Lineage Logistics purchasing Versacold
Lineage Logistics is buying Versacold Logistics Services from Torquest Partners and its investment partners, the Investment Management Corporation of Ontario, and Optrust. Financial terms of the transaction were not disclosed. Founded in 1941 and headquartered in Vaughan, Ontario, Versacold runs 24 temperature-controlled facilities comprising 114 million cubic feet of storage and 361,000 pallet positions.
Its network spans nine provinces and includes properties in markets including Toronto, Calgary, Vancouver, Edmonton, and Montreal. The business also offers integrated, asset-based inbound and outbound temperature-controlled transportation out of nine terminals across the country.A VersaCold employee walks by loading doors for the company's Milton, Ont., distribution center when it first opened in 2018. (File photo)
Torquest bought Versacold in late 2020 from KingSett Capital and Ivanhoe Cambridge. "Our acquisition of Versacold represents yet another milestone and an important broadening of our business in Canada," said Greg Lehmkuhl, president and CEO of Lineage Logistics.
"In its 80-plus year history, Versacold has built a stellar reputation by providing customers with differentiated and fully integrated warehousing and transportation solutions across Canada. We are excited to bring them into the One Lineage family and work alongside the Versacold leadership team to better serve customers across North America." Lehmkuhl added that Lineage will support Versacold's plans to expand capacity in key Canadian markets.
"We look forward to embarking on this journey with Lineage Logistics," said Mike Arcamone, president and CEO of Versacold Logistics Services. "Lineage has emerged as a world leader in creating innovative solutions to help reduce waste across the temperature-controlled supply chain. Combining our seasoned team and our complementary facility network with Lineage will create an even more dynamic company capable of supporting the growing needs of our customers in Canada and around the globe."
Lineage Logistics acquired Marc Villeneuve of Vaudreuil-Dorion, Quebec, in April 2021, and picked up Ontario Refrigerated Services (ORS) in July 2020. Marc Villeneuve specializes in distributing ice cream, primarily from Chapman's, while ORS serves local farmers in southwester Ontario. Lineage's expansion strategy clearly involves acquisitions.
In early 2021, Inside Logistics reported that the company had made 20 buys in Europe and 16 in the U.S. over the previous 12 months, along with the ORS acquisition, and the development of 15 greenfield facilities. Torquest partner Jonathan Fraser said his company will be investing in Lineage as part of the deal. The acquisition is expected to close in the third quarter of 2022, subject to customary closing conditions.
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