Lineage files IPO as the largest global temperature-controlled warehouse REIT in the world

By Steve Gelsi

Chilled-storage specialist was founded in 2008 by two Morgan Stanley veterans who launched their own private-equity firm

This story has been updated to correct Lineage's headquarters and number of employees.

Lineage Inc. on Wednesday filed for an initial public offering as the largest temperature-controlled warehouse real-estate investment trust in the world.

Lineage, which holds 482 properties after a string of acquisitions, plans to trade on the Nasdaq under the ticker symbol "LINE."

Novi, Mich.-based Lineage has not yet disclosed an estimated price range or the number of shares in its IPO, but the deal has the makings of a very large stock offering due to the long list of underwriters.

Morgan Stanley, Goldman Sachs, BofA Securities, J.P. Morgan and Wells Fargo Securities are joint bookrunning managers on the IPO's banking team, which includes a total of 28 banks.

Lineage reported net operating income of $59.7 million on revenue of $1.33 billion in the three months ended March 31, compared to net operating income of $57.9 million and revenue of $1.33 billion in the year-ago period.

For full-year 2023, Lineage earned $243.9 million on revenue of $5.34 billion, up from $233.6 million in net operating income on revenue of $4.93 billion in 2022.

The company has had more than two dozen institutional investors including Morgan Stanley (MS), Stonepeak Partners, StepStone Group (STEP), Cohen & Steers and D1 Capital Partners, according to data from FactSet.

Lineage Inc.'s controlling shareholder is Bay Grove Capital Group LLC, a private-equity firm founded by Adam Forste and Kevin Marchetti, two Morgan Stanley veterans who also founded the company in 2008.

Forste also worked at KKR & Co. (KKR) while Marchetti was formerly at the Yucaipa Companies.

"We strongly believe the public market is the best way to deliver growth at scale by providing us with the advantages of a liquid currency and direct access to a lower cost of capital to further fuel our growth flywheel," Marchetti and Forste said in a letter to prospective IPO shareholders.

"If we can remain true to what has made us successful as a private company, we will be even more successful as a publicly traded one," they added.

Lineage currently employs about 26,000 people in 19 countries.

The company became the largest cold-storage company globally in 2019 and has acquired dozens of companies and properties since 2008.

In 2022, Lineage raised $2.4 billion in equity, and in 2023 it hired Bob Crisci as chief financial officer after he held the same role at Roper Technologies Inc. (ROP)

-Steve Gelsi

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06-26-24 1355ET

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