Lineage, the world’s largest temperature-controlled warehouse real estate investment trust (REIT), began trading in the market’s largest initial public offering (IPO) of 2024. In its debut on the Nasdaq Stock Market under the ticker symbol “LINE,” Lineage shares rose by as much as 5% on Thursday. The company priced 57 million shares at $78 each on Wednesday, near the top of its initial $70 to $82 target range. This move allowed Lineage to raise $4.4 billion, achieving an implied valuation of over $18 billion. This IPO is the largest public offering since chip designer Arm’s $4.8 billion listing last September and more than twice the size of cruise operator Viking Holdings’ IPO in May.
Lineage’s significant market debut is backed by its reputation as a four-time CNBC Disruptor 50 company, ranking No. 46 on this year’s list. A critical component of Lineage’s rapid growth and success is its aggressive acquisition strategy. Co-founder and co-executive chairman Adam Forste, speaking on CNBC’s “Squawk Box” Thursday morning before the shares began trading, highlighted the company’s transformative journey. “We started with one warehouse and have made 116 acquisitions to build Lineage into what it is today,” Forste said, underscoring the dynamic expansion efforts that have propelled the company to its current stature.
In the past year alone, Lineage has strategically acquired companies such as Grupo Fuentes, Burris Logistics, Kennedy Transportation, and Harnes. The acquisition of Burris Logistics, for instance, added eight new facilities to Lineage’s expanding portfolio. Forste emphasized the collaborative nature of these acquisitions, stating, “Many families from whom we’ve acquired companies rolled equity into Lineage as part of their transaction, so they’re celebrating here with us today.” This approach not only broadened Lineage’s operational capacity but also fostered a unique network of partnerships, reflecting the company’s namesake—a lineage of family-owned warehouses that have been integrated into its business model.
Lineage’s extensive network now includes over 480 facilities, offering approximately 2.9 billion cubic feet of capacity across regions in North America, Europe, and the Asia-Pacific. These facilities form a comprehensive global network of cold-storage sites designed to reduce supply chain food waste and its environmental impact. Food loss is a pervasive issue at every level of the supply chain, with an estimated $600 billion worth of food wasted during or just after harvest. This waste currently accounts for about 11% of the world’s emissions, highlighting a significant environmental challenge and reinforcing Lineage’s mission to address these concerns through innovative storage solutions.
The successful IPO was supported by major financial institutions, with Morgan Stanley, Goldman Sachs, Bank of America, J.P. Morgan, and Wells Fargo serving as the lead underwriters. Their involvement underscores the strong market confidence in Lineage’s business model and future prospects, setting a robust foundation for its continued growth and impact in the temperature-controlled logistics industry. With its strategic vision and expansive network, Lineage is well-positioned to lead the sector in addressing the critical issues of food waste and supply chain efficiency, making it a pivotal player in the global logistics landscape.
Source: CNBC
