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Tuesday, Sep 27, 2022

Big Chunk of Vernon Cold Storage Changes Hands

Lineage Logistics, a company that specializes in temperature-controlled storage for a variety of products, has purchased eight warehouses from US Growers Cold Storage Inc. in Vernon.

The eight U.S. Growers facilities – six in operation and two under construction – make up about 955,500-square-feet of industrial and cold-storage space and sit near each other on E. 44th St. and E. Vernon and Exchange avenues.

U.S. Growers’ operations were not part of the deal, and a price for the buildings portfolio was not disclosed. U.S. Growers declined to comment.

Novi, Mich.-based Lineage, which is owned by warehouse and logistics-focused private equity firm Bay Grove Capital in San Francisco, specializes in storing farm-to-table-produce and other items, including blood, in temperature-controlled environments for customers.

The recent acquisition boosts Lineage’s operations to more than 120 temperature controlled storage facilities nationally and internationally. It has 11 in L.A. County, including two other warehouses in Vernon and a 250,000-square-foot facility in Long Beach that it operated before acquiring the U.S. Growers’ portfolio.

Megan Hendricksen, communications director of the company, said that the purchase increases the capacity of Lineage’s network in Southern California and bolsters storage flexibility as well.

“It made sense for us to expand here given the region’s access to port, transportation, warehousing and logistics sector,” Hendrickson said.

The move also adds 170 U.S. Growers’ employees to Lineage’s workforce, bringing the total to more than 7,200, she said.

“This acquisition further represents Lineage’s commitment to grow with customers and optimize their supply chains in a desirable core market,” Greg Lehmkuhl, Lineage chief executive, said in a statement. “Our aim has, and always will be, to consistently provide the space and solutions when and where our customers need it.”

Lineage was formed in April, 2012 when Bay Grove Capital consolidated several of its warehousing and logistics acquisitions under one roof.

Lineage has been expanding its network steadily, and recently acquired two cold storage facilities from American Cold Storage in Boonville, Ind., and Louisville, Kent.

– Shwanika Narayan


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