Initial public offering: Difference between revisions
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{{Short description|International warehousing and logistics management corporation}} |
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{{short description|Type of securities offering in which a private company becomes a public company}} |
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{{Infobox company |
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{{redirect|IPO}} |
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| name = Lineage Logistics |
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{{Use dmy dates|date=March 2021}} |
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| logo = Lineage Logistics logo.svg |
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| caption = |
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An '''initial public offering''' ('''IPO''') or '''stock launch''' is a [[public offering]] in which shares of a company are sold to [[institutional investor]]s<ref>Note: the price the company receives from the institutional investors is the IPO price</ref> and usually also to retail (individual) investors.<ref>{{Cite journal|last1=Hirst|first1=Scott|last2=Kastiel|first2=Kobi|date=1 May 2019|title=Corporate Governance by Index Exclusion|url=https://scholarship.law.bu.edu/faculty_scholarship/601|journal=Boston University Law Review|volume=99|issue=3|pages=1229}}</ref> An IPO is typically [[Underwriting|underwritten]] by one or more [[Investment banking|investment banks]], who also arrange for the shares to be listed on one or more [[stock exchange]]s. Through this process, colloquially known as ''floating'', or ''going public'', a privately held company is transformed into a [[public company]]. Initial public offerings can be used to raise new equity capital for companies, to [[monetize]] the investments of private shareholders such as company founders or [[private equity]] investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. |
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| type = [[private company|Private]] |
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| industry = Warehousing and supply chain logistics |
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After the IPO, shares are traded freely in the open market at what is known as the free float. [[Stock exchange|Stock exchanges]] stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information. |
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| founded = {{Start date and age|2012|04|18}} in [[Colton, California]], [[United States]] |
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| location = [[Novi, Michigan]] |
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| locations = |
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| area_served = [[North America]], [[Europe]], [[Asia-Pacific]] |
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| key_people = Greg Lehmkuhl, [[CEO]] and [[President (corporate title)|president]] |
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| products = |
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| services = |
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| revenue = |
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| operating_income = |
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| net_income = |
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| num_employees = 26,000<ref>{{cite news |title=Lineage Logistics acquires St. Joseph-based cold storage competitor |url=https://www.crainsdetroit.com/mergers-acquisitions/lineage-logistics-acquires-st-joseph-based-cold-storage-competitor |access-date=16 September 2021 |work=Crain's Detroit Business |date=2021-08-04}}</ref> |
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| parent = Bay Grove Capital, LLC |
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| footnotes = |
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| homepage = {{URL|https://www.onelineage.com/}} |
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}} |
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'''Lineage Logistics''' is the world's largest temperature-controlled warehouse [[Real estate investment trust|real estate investment trust (REIT)]], owned by Bay Grove, LLC.<ref name=M>{{cite web|url=https://www.mmh.com/article/lineage_logistics_acquires_eight_los_angeles_area_facilities_from_u.s._grow |title=Lineage Logistics acquires eight Los Angeles area facilities from U.S. Growers Cold Storage |date=December 4, 2017 |publisher=[[Modern Materials Handling]] |access-date=October 2, 2018}}</ref><ref name=O>{{cite web |url=http://www.santamariasun.com/biz-spotlights/12271/spotlight-on-lineage-logistics/ |title=Spotlight on: Lineage Logistics |author=Michael McCone |date=October 8, 2014|publisher=Santa Maria Sun |access-date=October 2, 2018 }}</ref><ref name=ipo>{{Cite web|title=Lineage Logistics reported to be pursuing $30B-plus IPO|url=https://www.freightwaves.com/news/lineage-logistics-reported-to-be-pursuing-30b-plus-ipo|website=freightwaves.com|access-date=2024-02-28}}</ref> Entering international markets in 2017, Lineage grew into the world's largest refrigerated warehousing company with a capacity exceeding 3 billion cubic feet and acquiring more than 100 companies through the end of 2023.<ref name=ZX/><ref>{{Cite web|title=2023 GCCA Global Top 25 List|url=https://www.gcca.org/resource/2023-gcca-global-top-25-list/|website=gcca.org|access-date=2024-02-26}}</ref> Lineage operates over 450 facilities across 18 countries, with approximately 26,000 team members globally in North America, Europe, and Asia Pacific.<ref name="Phillips">{{Cite web|url=https://www.wsj.com/articles/lineage-logistics-buys-rival-preferred-freezer-services-11551092401|title=Lineage Logistics Buys Rival Preferred Freezer Services|last=Phillips|first=Erica E.|website=WSJ|language=en-US|access-date=2019-07-03}}</ref><ref>{{Cite web|title=Built for This 2022 Sustainability Report|url=https://www.onelineage.com/sites/default/files/2023-11/LL_ESGReport_BuiltforThis_102623_LR.pdf|website=onelineage.com|access-date=2024-02-26}}</ref> |
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Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a [[prospectus (finance)|prospectus]]. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing the value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the [[Dutch auction]] have also been explored and applied for several IPOs. |
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==History== |
==History== |
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The company was founded in April 2012 by former Morgan Stanley investment bankers Kevin Marchetti and Adam Forste, who formed Bay Grove Capital, LLC, through the consolidation of acquired warehousing and logistics companies beginning, in December 2008, with the purchase of Seafreeze from [[Toyo Suisan|Toyo Susian Kaisha]].<ref name="LAbusiness"/> The company then acquired CityIce, in 2009, and Flint River Services, in 2010, followed, in 2011, by Terminal Freezers of [[Santa Maria, California]], and Richmond Cold Storage, purchased from Atlanta Equity. |
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The earliest form of a company which issued ''public shares'' was the case of the ''[[Publican|publicani]]'' during the [[Roman Republic]], although this claim is not shared by all modern scholars.<ref>{{Cite journal |last1=Poitras |first1=Geoffrey |last2=Geranio |first2=Manuela |date=2016 |title=Trading of shares in the Societates Publicanorum? |url=https://www.sfu.ca/~poitras/eeh_roman-shares_16.pdf |journal=Explorations in Economic History |volume=61 |pages=95–118 |doi=10.1016/j.eeh.2016.01.003 |s2cid=155816750 |via=Elsevier}}</ref> Like modern joint-stock companies, the ''publicani'' were legal bodies independent of their members whose ownership was divided into shares, or ''partes''.<ref>{{Cite journal |last=Malmendier |first=Ulrike |date=December 2009 |title=Law and Finance "at the Origin" |url=https://www.aeaweb.org/articles?id=10.1257/jel.47.4.1076 |journal=Journal of Economic Literature |language=en |volume=47 |issue=4 |pages=1076–1108 |doi=10.1257/jel.47.4.1076 |issn=0022-0515}}</ref> There is evidence that these shares were sold to public investors and traded in a type of [[over-the-counter (finance)|over-the-counter]] market in the [[Roman Forum|Forum]], near the [[Temple of Castor and Pollux]]. The shares fluctuated in value, encouraging the activity of speculators, or ''quaestors''. Mere evidence remains of the prices for which ''partes'' were sold, the nature of initial public offerings, or a description of stock market behavior. ''Publicani'' lost favor with the fall of the [[Roman Republic|Republic]] and the rise of the [[Roman Empire|Empire]].<ref>{{cite news|url=https://www.washingtonpost.com/wp-srv/style/longterm/books/chap1/deviltakethehindmost.htm|title=Books & Reading: Chapter One|newspaper=[[The Washington Post]]|access-date=27 November 2016}}</ref> |
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Lineage was formed with the fifth-largest network of temperature-controlled warehouse facilities in North America in 2012, according to [[International Association of Refrigerated Warehouses]] (IARW) rankings, with 40 facilities in eight states, including near international ports at [[Savannah, Georgia]], [[Seattle, Washington]] and [[Norfolk, Virginia]]; as well as providing warehouse management, consulting, and food processing support.<ref name="LAbusiness"/> |
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In the United States, the first IPO was the public offering of [[Bank of North America]] around 1783.<ref name="Moaf.org">{{cite web|url=http://www.moaf.org/exhibits/americas_first_ipo/index |title=Exhibits — America's First IPO — Museum of American Finance |publisher=Moaf.org |access-date=12 July 2012}}</ref> |
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In a March 2021 interview with Bloomberg, Lineage CEO Greg Lehmkuhl said the company is actively preparing its [[IPO]].<ref name=ipo /> |
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==Advantages and disadvantages== |
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{{Multiple issues|section=yes| |
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{{Cleanup rewrite||section|date=May 2022}} |
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{{POV section|date=May 2022}} |
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}} |
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==Operations and technology== |
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===Advantages=== |
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By 2015, Lineage's facility network was ranked the second-largest in the world by the International Association of Refrigerated Warehouses. With 111 facilities in 21 states, Lineage also ranked as the second largest temperature-controlled warehousing and logistics company in the United States.<ref name="JOC"/> |
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When a company lists its securities on a [[Stock exchange|public exchange]], the money paid by the investing public for the newly issued shares goes directly to the company (primary offering) as well as to any early private investors who opt to sell all or a portion of their holdings (secondary offerings) as part of the larger IPO. An IPO, therefore, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of the debt, or working capital. A company selling common shares is never required to repay the capital to its public investors. Those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to [[monetize]] their investment. After the IPO, once shares are traded in the open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a [[fixed price]], through a [[secondary market offering]]. This type of offering is not dilutive since no new shares are being created. Stock prices can change dramatically during a company's first days in the public market.<ref>{{cite news |last1=Jessica |first1=Matthews |title=How regular investors can access IPOs |url=https://fortune.com/2021/07/08/how-to-access-ipos-regular-investors/ |access-date=30 July 2021 |work=Forbes |date=8 July 2021}}</ref> |
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In September 2020, Lineage raised $1.6 billion in equity for technology and expansion.<ref>{{Cite web|title=Lineage Raises $1.6 Billion Amid Demand Surge for Cold Storage|url=https://www.bloomberg.com/news/articles/2020-09-16/lineage-raises-1-6-billion-amid-demand-surge-for-cold-storage|website=bloomberg.com|access-date=2024-02-28}}</ref> |
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Once a company is listed, it is able to issue additional common shares in a number of different ways, one of which is the [[follow-on offering]]. This method provides capital for various corporate purposes through the issuance of equity (see [[stock dilution]]) without incurring any debt. This ability to quickly raise potentially large amounts of capital from the marketplace is a key reason many companies seek to go public. |
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In March 2021, Lineage raised $1.9 billion in equity for global [[Greenfield project|greenfield developments]], facility expansions, [[M&A]] and [[research and development]].<ref>{{cite news |title=Lineage Logistics Raises $1.9 Billion in New Equity to Fund Investment in Global Network Capacity and Industry-Leading Technology |url=https://money.yahoo.com/lineage-logistics-raises-1-9-111500265.html |access-date=12 September 2021 |work=Yahoo! |date=March 11, 2021}}</ref> |
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An IPO accords several benefits to the previously private company: |
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In July 2021, Lineage partnered with 8VC logistics technology venture capital firm, to further invest in the transportation and logistics technology sector.<ref>{{cite news |last1=de León|first1=Riley |title=Joe Lonsdale's 8VC partners with Lineage Logistics to double down on transportation and warehousing investments |url=https://www.cnbc.com/2021/07/15/lonsdales-8vc-partners-with-morgan-stanley-backed-logistics-company.html |access-date=15 September 2021 |work=CNBC}}</ref> |
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* Enlarging and diversifying equity base |
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* Enabling cheaper access to capital |
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* Increasing exposure, prestige, and public image |
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* Attracting and retaining better management and employees through liquid equity participation |
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* Facilitating acquisitions (potentially in return for shares of stock) |
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* Creating multiple financing opportunities: equity, [[convertible debt]], cheaper bank loans, etc. |
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* Benefits for pre-IPO owners in the form of Tax Receivable Agreements<ref>{{cite journal |url=https://scholarship.law.vanderbilt.edu/cgi/viewcontent.cgi?article=1028&context=vlr#:~:text=A%20new%20tax%20innovation%2C%20the,almost%20never%20used%20in%20IPOs. |last=Shobe |first=Gladriel |title=Private Benefits in Public Offerings: Tax Receivable Agreements in IPOs |journal=Vanderbilt Law Review |volume=71 |issue=3}}</ref> |
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In November 2023, Lineage expanded and established [[Harnes]] ([[Pas-de-Calais]]) as its European logistics hub by opening a new {{Convert|17,000|m2|sqft|abbr=on}} state-of-the-art modern cold storage facility.<ref>{{Cite web |date=2023-11-08 |title=Lineage Expands its European Footprint with New State-Of-The-Art Facility in France |url=https://www.businesswire.com/news/home/20231108192261/en/Lineage-Expands-its-European-Footprint-with-New-State-Of-The-Art-Facility-in-France |access-date=2024-04-01 |website=www.businesswire.com |language=en}}</ref> |
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===Disadvantages=== |
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There are several disadvantages to completing an initial public offering: |
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As of March 2024, Lineage has been granted over 75 patents registered across multiple jurisdictions, related to technological developments within the temperature-controlled logistics sector.<ref>{{Cite web |title=Patent Assignment Search - LINEAGE LOGISTICS LLC |url=https://assignment.uspto.gov/patent/index.html#/patent/search/resultAssignee?assigneeName=LINEAGE%20LOGISTICS%20LLC |access-date=2024-03-11 |website=USPTO.gov}}</ref> |
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* Significant legal, accounting, and marketing costs, many of which are ongoing |
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* Requirement to disclose financial and business information |
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* Meaningful time, effort, and attention required of management |
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* Risk that required funding will not be raised |
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* Public dissemination of information that may be useful to competitors, suppliers and customers. |
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* Loss of control and stronger [[principal–agent problem|agency problems]] due to new shareholders |
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* Increased risk of litigation, including private securities class actions and shareholder derivative actions<ref>{{cite journal|last1=Rose Selden|first1=Shannon|last2=Goodman|first2=Mark|title=The Shift in Litigation Risks When U.S. Companies Go Public|url=https://www.transactionadvisors.com/insights/shift-litigation-risks-when-us-companies-go-public|journal=Transaction Advisors|issn=2329-9134|access-date=16 January 2015|archive-date=6 November 2018|archive-url=https://web.archive.org/web/20181106192504/https://www.transactionadvisors.com/insights/shift-litigation-risks-when-us-companies-go-public|url-status=dead}}</ref> |
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==Acquisitions and expansion== |
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==Procedure== |
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In 2012, the company acquired Stanford Refrigerated Warehouses and Castle & Cooke Cold Storage; Bill Hendricksen of Castle & Cooke then joined Lineage as [[CEO]].<ref name=J>{{cite news |url=https://www.wsj.com/articles/DJFLBO0020120711e87bbiy3k |title=Cool Deal: Lineage Logistics Acquires Castle & Cooke Cold Storage |author=Beina Xu |date=July 11, 2012 |newspaper=[[The Wall Street Journal]] |access-date=October 2, 2018 }}</ref> Hendricksen was succeeded by W. Gregory Lehmkuhl, in July 2015.<ref name ="JOC">[https://www.joc.com/international-logistics/logistics-providers/con-ways-lehmkuhl-join-lineage-logistics-ceo_20150618.html William B. Cassidy] "Con-way's Lehmkuhl to join Lineage Logistics as CEO", JOC Group Inc. Jun 18, 2015.</ref> Lineage subsequently moved its headquarters from [[Irvine, California]] to Novi, Michigan.<ref name="Frank">[https://www.crainsdetroit.com/article/20170323/NEWS/170329896/california-based-logistics-firm-to-move-to-novi Annalise Frank] "California-based logistics firm to move to Novi", Crain's Detroit Business, March 23, 2017.</ref><ref>https://www.michiganbusiness.org/reports-data/success-stories/lineage-logistics/ ''Michigan Business''</ref> |
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IPO procedures are governed by different laws in different countries. In the United States, IPOs are regulated by the [[United States Securities and Exchange Commission]] under the [[Securities Act of 1933]].<ref>{{cite web|title=The Laws That Govern the Securities Industry|url=https://www.sec.gov/about/laws.shtml|publisher=Securities and Exchange Commission|access-date=12 December 2014}}</ref> In the United Kingdom, the [[UK Listing Authority]] reviews and approves prospectuses and operates the listing regime.<ref>{{cite web|title=UK Listing Authority|url=http://www.fca.org.uk/firms/markets/ukla|access-date=12 December 2014}}</ref> |
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In April 2013, the company received a $220 million loan,<ref name=G>{{cite news |url=https://www.wsj.com/articles/DJFLBO0020130412e94cjhzmy |title=Lineage Logistics to Use $220M Loan to Refinance, Fuel Acquisitions |author=<!--Not stated--> |date=April 12, 2013 |newspaper=[[The Wall Street Journal]] |access-date=October 2, 2018 }}</ref> and acquired Seattle Cold Storage and a [[University Park, Illinois]] facility.<ref name="WSJ 2">{{cite news |last1=Smith |first1=Jennifer |title=Lineage Logistics Expands Global Cold-Storage Space with $900 Million Acquisition |url=https://www.wsj.com/articles/lineage-logistics-expands-global-cold-storage-space-with-900-million-acquisition-11574105285 |access-date=11 September 2021 |work=The Wall Street Journal |date=2019-11-18}}</ref> By 2014, most Lineage customers were food producers requiring [[cold chain]] warehousing, transportation, and logistics; to meet demand, the company concentrated on automation and acquisition.<ref name=C>{{cite news |url=https://www.wsj.com/articles/lineage-logistics-nears-deal-to-buy-millard-refrigerated-1394645730 |title=Lineage Logistics Reaches Deal to Buy Millard Refrigerated |author=Dana Mattioli |date=March 12, 2014 |newspaper=[[The Wall Street Journal]] |access-date=October 2, 2018}}</ref> In March 2014, the company agreed to purchase Millard Refrigerated Services for about $1 billion, its largest acquisition to date,<ref name=C/> making Lineage "the second-largest temperature-controlled warehousing and logistics company in the world."<ref>[https://www.foodlogistics.com/cold-chain/news/11299079/lineage-logistics-to-open-leedcertified-cold-storage-facility-in-california "Lineage Logistics To Open LEED-Certified Cold Storage Facility In California", Food Logistics, Jan 23, 2014.]</ref> In the same year, Lineage acquired Loop Cold Storage, Oneida Cold Storage & Warehouse, Murphy Overseas, and two facilities in Watsonville, California from Dreisbach Enterprises and in September 2014, opened a new temperature-controlled warehouse in Santa Maria, California.<ref name=O/> |
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===Planning=== |
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Planning is crucial to a successful IPO. One book<ref>Lipman, International and U.S. IPO Planning, {{ISBN|978-0-470-39087-0}}</ref> suggests the following seven planning steps: |
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# develop impressive management and professional team |
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# grow the company's business with an eye to the public marketplace |
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# obtain audited financial statements using IPO-accepted accounting principles |
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# clean up the company's act |
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# establish antitakeover defenses |
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# develop good corporate governance |
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# create insider bail-out opportunities and take advantage of IPO windows. |
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In January 2015, Lineage acquired the Pacific Northwest cold storage facilities of Columbia Colstor, headquartered in Moses Lake, Washington.<ref>[https://www.suntribunenews.com/news/business/article_4e27ff0a-9c21-11e4-a15d-a78bde3945b1.html Richard Byrd] "Columbia Colstor acquired by California company", SunTribune, January 13, 2015.</ref> |
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===Retention of underwriters=== |
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IPOs generally involve one or more [[investment bank]]s known as "[[underwriter]]s". The company offering its shares, called the "issuer", enters into a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell those shares. |
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In May 2016, the company opened a $150 million temperature-controlled warehouse in [[North Charleston, South Carolina]], near the [[Port of Charleston]],<ref name=E>{{cite news |url=https://www.postandcourier.com/business/chilling-at-last/article_ac708973-6b31-5a03-a53c-2d4754d44aed.html|title=Chilling, at last |author=David Wren |date=May 31, 2016 |newspaper=[[The Post and Courier]]|access-date=October 2, 2018 }}</ref> then acquired Consolidated Distribution Corporation of [[Lombard, Illinois]] that August,<ref name ="JOC"/> making Lineage the largest customized redistribution network in the United States.<ref>[https://www.refrigeratedtransporter.com/cold-storage/lineage-logistics-llc-purchases-consolidated-distribution-corporation Refrigerated Transporter] "Lineage Logistics LLC purchases Consolidated Distribution Corporation", Aug 2016.</ref> Two months later, it was reported that Lineage was considering locating a large facility at [[New Century AirCenter]] in [[Gardner, Kansas]],<ref name=A>{{cite news |url=http://www.kansascity.com/news/local/community/joco-913/article152834079.html |title=Cold storage business seeking tax abatement to build at New Century AirCenter |author= Roxie Hammill |date=May 26, 2017 |newspaper=[[The Kansas City Star]] |access-date=October 2, 2018 }}</ref> but the proposed location resulted in lawsuits from local residents,<ref name=A/> and Lineage scrapped the project in November 2017 "due to a change in customer needs",<ref name=A/><ref name=H>{{cite news |url=http://www.kansascity.com/news/politics-government/article182244726.html |title=Was it public protest or business decision that halted controversial Olathe project? |author=Lynn Horsley |date=November 2, 2017 |newspaper=[[Kansas City Star]] |access-date=October 2, 2018 }}</ref> though the project had received unanimous approval from county commissioners in July.<ref name=A/><ref name=H/> |
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A large IPO is usually underwritten by a "[[syndicate]]" of investment banks, the largest of which take the position of "lead underwriter". Upon selling the shares, the underwriters retain a portion of the proceeds as their fee. This fee is called an [[underwriting spread]]. The spread is calculated as a discount from the price of the shares sold (called the [[gross spread]]). Components of an underwriting spread in an initial public offering (IPO) typically include the following (on a per-share basis): Manager's fee, Underwriting fee—earned by members of the syndicate, and the Concession—earned by the broker-dealer selling the shares. The Manager would be entitled to the entire underwriting spread. A member of the syndicate is entitled to the underwriting fee and the concession. A broker-dealer who is not a member of the syndicate but sells shares would receive only the concession, while the member of the syndicate who provided the shares to that broker-dealer would retain the underwriting fee.<ref name="Investment Banking">{{cite book|title=Series 79 Investment Banking Representative Qualification Examination, Study Manual, 41st Edition|year=2010|publisher=Securities Trading Corporation}}</ref> Usually, the managing/lead underwriter, also known as the [[bookrunner]], typically the underwriter selling the largest proportions of the IPO, takes the highest portion of the [[gross spread]], up to 8% in some cases. |
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Lineage entered European markets in 2017, acquiring Partner Logistics, a large cold-chain storage supplier.<ref name="WSJ 2"/> The company purchased facilities from American Cold Storage, in the [[Midwestern United States|Midwest]], and eight [[Los Angeles, California]] area warehouses from U.S. Growers Cold Storage,<ref name=M/> raising its employee roster to 7,200, with Lineage operating 120 temperature-controlled storage facilities.<ref name="LAbusiness">[http://labusinessjournal.com/news/2017/dec/08/big-chunk-vernon-cold-storage-changes-hands/ Shwanika Narayan. "Big Chunk of Vernon Cold Storage Changes Hands". Los Angeles Business Journal; December 8, 2017]</ref> |
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Multinational IPOs may have many syndicates to deal with differing legal requirements in both the issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the major selling syndicate in its domestic market, Europe, in addition to separate group corporations or selling them for US/Canada and Asia. Usually, the lead underwriter in the head selling group is also the lead bank in the other selling groups. |
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The company then expanded into the temperature-controlled logistics markets in Australia, New Zealand, and Sri Lanka, in November 2019, with the acquisition of Emergent Cold,<ref name="FW1">{{cite web |last1=Malden |first1=Todd |title=Lineage Logistics completes Emergent Cold acquisition |url=https://www.freightwaves.com/news/lineage-logistics-completes-emergent-cold-acquisition |website=Freightwaves.com |publisher=FreightWaves |access-date=18 September 2021}}</ref> then into [[Canada]], in July 2020, acquiring Ontario Refrigerated Services Inc.<ref name="FW2">{{cite web |last1=Tabak |first1=Nate |title=Lineage Logistics enters Canada with Ontario Refrigerated Services acquisition|url=https://www.freightwaves.com/news/lineage-logistics-enters-canada-with-ontario-refrigerated-services-acquisition|website=Freightwaves.com |publisher=FreightWaves |access-date=18 September 2021}}</ref> |
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Because of the wide array of legal requirements and because it is an expensive process, IPOs also typically involve one or more [[law firm]]s with major practices in [[securities law]], such as the [[Magic Circle (law)|Magic Circle]] firms of London and the [[white-shoe firm]]s of New York City. |
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During 2018, the company acquired 24 companies, including The Yearsley Group, the UK's largest Cold Storage and Haulage supplier, maintaining its second-largest status.<ref name=History>[http://www.bay-grove.com/history "History", Bay Grove LLC]</ref> The company also sold minority stakes worth $700 million. Company real estate holdings were estimated at $4 billion in value.<ref name=ZX>{{cite news |url=https://www.wsj.com/articles/cold-storage-specialist-lineage-logistics-sells-700-million-minority-stake-1531854544 |title=Cold-Storage Specialist Lineage Logistics Sells $700 Million Minority Stake |date=July 17, 2018 |newspaper=[[Wall Street Journal]] |access-date=October 2, 2018}}</ref> |
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Financial historians [[Richard Sylla]] and [[Robert E. Wright]] have shown that before 1860 most early U.S. corporations sold shares in themselves directly to the public without the aid of intermediaries like investment banks.<ref>Robert E. Wright, "Reforming the U.S. IPO Market: Lessons from History and Theory", ''Accounting, Business, and Financial History'' (November 2002), 419–437.</ref> The [[direct public offering]] (DPO), as they term it,<ref>Robert E. Wright and Richard Sylla, "Corporate Governance and Stockholder/Stakeholder Activism in the United States, 1790–1860: New Data and Perspectives". In Jonathan Koppell (ed.), ''Origins of Shareholder Advocacy'' (New York: Palgrave Macmillan, 2011), 231–51.</ref> was not done by auction but rather at a share price set by the issuing corporation. In this sense, it is the same as the fixed price public offers that were the traditional IPO method in most non-US countries in the early 1990s. The DPO eliminated the agency problem associated with offerings intermediated by investment banks. |
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Also in 2018, [[Stonepeak Partners]], D1 Capital Partners, and existing backers acquired minority stakes in the company valued at $700 million.<ref name=ZX>{{cite news |url=https://www.wsj.com/articles/cold-storage-specialist-lineage-logistics-sells-700-million-minority-stake-1531854544 |title=Cold-Storage Specialist Lineage Logistics Sells $700 Million Minority Stake |date=July 17, 2018 |newspaper=[[Wall Street Journal]] |access-date=October 2, 2018}}</ref> |
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===Allocation and pricing=== |
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The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include: |
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*[[Best efforts contract]] |
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*[[Firm commitment contract]] |
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*[[All-or-none contract]] |
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*[[Bought deal]] |
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Public offerings are sold to both institutional investors and retail clients of the underwriters. A licensed securities salesperson ([[Registered Representative]] in the US and Canada) selling shares of a public offering to his clients is paid a portion of the selling concession (the fee paid by the issuer to the underwriter) rather than by his client. In some situations, when the IPO is not a "hot" issue (undersubscribed), and where the salesperson is the client's advisor, it is possible that the financial incentives of the advisor and client may not be aligned. |
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On February 25, 2019 ''[[The Wall Street Journal]]'' reported the company's [[2800 Polar Way|acquisition of Preferred Freezer Services LLC.]], its largest competitor, in a deal reportedly worth over $1 billion, expanding Lineage to the world's largest facility network, with 1.3 billion cubic feet of storage in over 200 facilities across the United States, Europe, and Asia.<ref name="Phillips"/><ref name="Keenan">{{cite news |last1=Keenan |first1=Tim |title=Cold Growth |url=https://www.dbusiness.com/from-the-magazine/cold-growth/ |access-date=11 September 2021 |work=dbusiness.com |date=2020-11-25}}</ref> |
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The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under a specific circumstance known as the [[greenshoe]] or overallotment option. This option is always exercised when the offering is considered a "hot" issue, by virtue of being oversubscribed. |
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On May 22, 2020 Lineage acquired the distribution assets of one of the largest independent Food Distribution companies in the country for over 100 years, Maines Paper & Food, Inc, based in [[Conklin, New York]].<ref name="Keenan"/> That June, the company acquired Emergent Cold, Australia's largest cold-chain supplier, and New Orleans Cold Storage, with four port facilities in [[New Orleans]], Louisiana, [[Houston, Texas]] and [[Charleston, South Carolina]].<ref name=FW1/> |
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In the US, clients are given a preliminary prospectus, known as a [[red herring prospectus]], during the initial quiet period. The red herring prospectus is so named because of a bold red warning statement printed on its front cover. The warning states that the offering information is incomplete, and may be changed. The actual wording can vary, although most roughly follow the format exhibited on the Facebook IPO red herring.<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm|title=Registration Statement on Form S-1|website=www.sec.gov|access-date=10 December 2017}}</ref> During the quiet period, the shares cannot be offered for sale. Brokers can, however, take [[indication of interest|indications of interest]] from their clients. At the time of the stock launch, after the Registration Statement has become effective, indications of interest can be converted to buy orders, at the discretion of the buyer. Sales can only be made through a final prospectus cleared by the Securities and Exchange Commission. |
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In July, Lineage acquired Henningsen Cold Storage, based in [[Portland, Oregon]], with 14 cold storage facilities located mainly in Oregon and Washington, raising its employee roster to 16,000.<ref>{{cite news |last1=Marano |first1=Zachary |title=Novi's Lineage Logistics Acquires Oregon's Henningsen Cold Storage Co., Expands Global Reach |url=https://www.dbusiness.com/daily-news/novis-lineage-logistics-acquires-oregons-henningsen-cold-storage-co-expands-global-reach/ |access-date=11 September 2021 |work=dbusiness.com |date=2020-05-28}}</ref> This acquisition raised Lineage's global storage capacity to {{Convert|50,660,000|m3|cuft|abbr=on}}. <ref name=":0">{{Cite web |last=Salin |first=Victoria |date=2020-07-01 |title=2022 GCCA Global Cold Storage Capacity Report |url=https://www.gcca.org/legacy-system/2020-GCCA-Global-Cold-Storage-Capacity-Report-FINAL.pdf |url-status=live |archive-url=https://web.archive.org/web/20240220000958/https://www.gcca.org/legacy-system/2020-GCCA-Global-Cold-Storage-Capacity-Report-FINAL.pdf |archive-date=2024-02-20 |access-date=2024-04-01 |website=Global Cold Chain Alliance}}</ref> |
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The final step in preparing and filing the final IPO prospectus is for the issuer to retain one of the major financial "printers", who print (and today, also electronically file with the [[U.S. Securities and Exchange Commission|SEC]]) the registration statement on Form S-1. Typically, preparation of the final prospectus is actually performed at the printer, wherein one of their multiple conference rooms the issuer, issuer's counsel (attorneys), underwriter's counsel (attorneys), the lead underwriter(s), and the issuer's accountants/auditors make final edits and proofreading, concluding with the filing of the final prospectus by the financial printer with the Securities and Exchange Commission.<ref name="InvestorPlace">{{cite web |title=The Main Players In An Initial Public Offering |date=26 February 2012 |url = http://investorplace.com/ipo-playbook/the-main-players-in-an-initial-public-offering-ipo/#.U88EE_ldVaQ |access-date=22 July 2014}}</ref> |
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On December 1, 2020, Lineage acquired Pago, a warehousing, distribution and transport logistics provider in Poland.<ref>{{Cite web|date=2020-12-01|title=Lineage Logistics Enters the Polish Cold Storage Market With the Acquisition of Pago Sp. z o.o.| url=https://www.businesswire.com/news/home/20201201005951/en/Lineage-Logistics-Enters-the-Polish-Cold-Storage-Market-With-the-Acquisition-of-Pago-Sp.-z-o.o.|access-date=2020-12-17|website=www.businesswire.com|language=en}}</ref> |
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Before legal actions initiated by New York Attorney General [[Eliot Spitzer]], which later became known as the [[Global Settlement]] enforcement agreement, some large [[Financial institution|investment firms]] had initiated favorable research coverage of companies in an effort to aid [[corporate finance]] departments and retail divisions engaged in the marketing of new issues. The central issue in that enforcement agreement had been [[Declaratory ruling|judged]] in court previously. It involved the conflict of interest between the [[investment banking]] and [[Financial analyst|analysis]] departments of ten of the largest investment firms in the United States. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees.<ref name=" one">{{cite web |title=Ten of Nation's Top Investment Firms Seattle Enforcement Actions Involving Conflict of Interest |date=28 April 2003 |url=https://www.sec.gov/news/press/2003-54.htm |access-date=23 July 2014}}</ref> A typical violation addressed by the settlement was the case of [[Credit Suisse First Boston|CSFB]] and [[Salomon Smith Barney]], which were alleged to have engaged in the inappropriate spinning of "hot" IPOs and issued fraudulent research reports in violation of various sections within the [[Securities Exchange Act of 1934]]. |
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In May 2021, Lineage acquired Crystal Creek e-commerce fulfillment logistics operator and its five U.S. warehouses,<ref>{{Cite web|title=Cold-chain logistics giant Lineage's latest acquisition launches it into the booming online grocery shopping business|url=https://www.businessinsider.com/lineage-acquires-e-commerce-firm-crystal-creek-moves-into-groceries-2021-5|access-date=September 12, 2021|website=businessinsider.com}}</ref> increasing the company's acquisitions to 72.<ref>{{Cite web|title=12 cold chain logistics startups heating up in the year of the vaccine|url=https://www.businessinsider.com/12-cold-chain-logistics-startups-helping-deliver-vaccines-2021-3|access-date=September 12, 2021|website=businessinsider.com}}</ref> The same month, Lineage entered the Spanish marketplace, acquiring cold storage firm Frigorificos de Navarra of [[Gijón]], Spain from Frioastur and, in June 2021, entered the European freight industry with its acquisition of [[Rotterdam]]-based UTI Forwarding,<ref>{{cite news |last1=Nagl |first1=Kurt |title=Lineage Logistics closes deal to enter European freight industry |url=https://www.crainsdetroit.com/mergers-acquisitions/lineage-logistics-closes-deal-enter-european-freight-industry |access-date=12 September 2021 |work=Crain's Detroit Business |date=June 1, 2021}}</ref> and also acquired Kloosterboer Group in Europe, and the cold storage division of Claus Sorensen Group in Denmark.<ref>{{cite news |last1=Tulauskas |first1=Jack |title=Lineage Logistics to Acquire Clause Sorensen Group's Cold Division |url=https://www.dbusiness.com/daily-news/lineage-logistics-to-acquire-clause-sorensen-groups-cold-division/ |access-date=18 September 2021 |work=Crain's Detroit Business}}</ref> In November 2021, Lineage expanded into the Italian cold storage market with the acquisition of Kantaro SRL.<ref>{{Cite web|title=Lineage Logistics enters the Italian cold storage market with the acquisition of Kantaro SRL|url=https://refindustry.com/news/cold-chain/lineage-logistics-enters-the-italian-cold-storage-market-with-the-acquisition-of-kantaro-srl/|website=refindustry.com|access-date=2024-02-26}}</ref> |
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===Pricing=== |
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In January 2022, Lineage continued its expansion by acquiring Auscold Logistics in South Australia.<ref>{{Cite web|title=Lineage Logistics Expands through Auscold Logistics Acquisition in South Australia|url=https://refindustry.com/news/cold-chain/lineage-logistics-expands-through-auscold-logistics-acquisition-in-south-australia/|website=refindustry.com|access-date=2024-02-26}}</ref> In the same month, Lineage also acquired Van Tuyl Logistics, as well as individual locations from H&S Coldstores in Beneden-Leeuwen and Frigocare Rotterdam BV in Rotterdam.<ref>{{Cite web|title=Cold Storage Provider Lineage Acquires 3 Dutch Logistics Firms|url=https://www.foodmanufacturing.com/capital-investment/news/21993088/cold-storage-provider-lineage-acquires-3-dutch-logistics-firms|access-date=2024-02-26}}</ref> |
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A company planning an IPO typically appoints a lead manager, known as a [[bookrunner]], to help it arrive at an appropriate price at which the shares should be issued. There are two primary ways in which the price of an IPO can be determined. Either the company, with the help of its lead managers, fixes a price ("fixed price method"), or the price can be determined through analysis of confidential investor demand data compiled by the bookrunner ("[[book building]]"). |
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In March, Lineage further expanded its network by acquiring MTC Logistics, adding nearly 38 million cubic feet of capacity and more than 113,000 pallet positions in the United States and its presence at key ports along the U.S. East and Gulf Coasts.<ref>{{Cite web|title=Lineage absorbs MTC Logistics|url=https://www.fleetowner.com/refrigerated-transporter/cold-storage-logistics/article/21236784/lineage-absorbs-mtc-logistics|website=fleetowner.com|access-date=2024-02-26}}</ref> |
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Historically, many IPOs have been underpriced. The effect of underpricing an IPO is to generate additional interest in the stock and a rapid rise in share price when it first becomes publicly traded (known as an "IPO pop"). [[Flipping]], or quickly selling shares for a [[Profit (accounting)|profit]], can lead to significant gains for investors who were allocated shares of the IPO at the offering price. However, underpricing an IPO results in lost potential capital for the issuer. One extreme example is [[theglobe.com]] IPO which helped fuel the IPO "mania" of the late 1990s internet era. Underwritten by [[Bear Stearns]] on 13 November 1998, the IPO was priced at $9 per share. The share price quickly increased 1,000% on the opening day of trading, to a high of $97. Selling pressure from institutional flipping eventually drove the stock back down, and it closed the day at $63. Although the company did raise about $30 million from the offering, it is estimated that with the level of demand for the offering and the volume of trading that took place they might have left upwards of $200 million on the table. |
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In April, Lineage acquired VersaCold Logistics to expand its presence in Canada.<ref>{{Cite web |title=Lineage Logistics acquires VersaCold Logistics |url=https://www.dcvelocity.com/articles/54372-lineage-logistics-acquires-versacold-logistics |access-date=2022-05-07 |website=www.dcvelocity.com |language=en}}</ref> Later in May, the company acquired Mandai Link Logistics to expand into Singapore.<ref>{{Cite web |last=King |first=R. J. |date=2022-05-05 |title=Lineage Logistics in Novi Acquires Singapore Automated Cold Storage Facility |url=https://www.dbusiness.com/daily-news/lineage-logistics-in-novi-acquires-singapore-automated-cold-storage-facility/ |access-date=2022-05-07 |website=DBusiness Magazine |language=en-US}}</ref> |
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The danger of overpricing is also an important consideration. If a stock is offered to the public at a higher price than the market will pay, the underwriters may have trouble meeting their commitments to sell shares. Even if they sell all of the issued shares, the stock may fall in value on the first day of trading. If so, the stock may lose its marketability and hence even more of its value. This could result in losses for investors, many of whom being the most favored clients of the underwriters. Perhaps the best-known example of this is the Facebook IPO in 2012. |
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In August, Lineage acquired Cold Storage Nelson in New Zealand. This increased its presence in the Asia-Pacific area.<ref>{{Cite web|title=Cold Storage Nelson bought by Lineage Logistics|url=https://www.stuff.co.nz/business/industries/129494799/cold-storage-nelson-bought-by-lineage-logistics|website=stuff.co.nz|access-date=2024-02-26}}</ref> |
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Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that is low enough to stimulate interest in the stock but high enough to raise an adequate amount of capital for the company. When pricing an IPO, underwriters use a variety of key performance indicators and non-GAAP measures.<ref>{{cite journal|last1=Gould|first1=Michael|title=How Non-GAAP Measures Can Impact Your IPO|url=https://www.transactionadvisors.com/insights/how-non-gaap-measures-can-impact-your-ipo|journal=Transaction Advisors|issn=2329-9134|access-date=16 January 2015|archive-date=6 November 2018|archive-url=https://web.archive.org/web/20181106192726/https://www.transactionadvisors.com/insights/how-non-gaap-measures-can-impact-your-ipo|url-status=dead}}</ref> The process of determining an optimal price usually involves the [[underwriters]] ("syndicate") arranging share purchase commitments from leading institutional investors. |
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In August 2023, Lineage expanded its European network by acquiring Grupo Fuentes, a Spanish transport and cold store operator.<ref>{{Cite web|title=Lineage Logistics Announces Acquisition of Spanish Transport and Cold-Store Operator Grupo Fuentes|url=https://www.globaltrademag.com/lineage-logistics-announces-acquisition-of-spanish-transport-and-cold-store-operator-grupo-fuentes/|website=globaltrademag.com|access-date=2024-02-26}}</ref> In addition, Lineage strengthened its presence in northern Vietnam through a joint venture with SK Logistics.<ref>{{Cite web|title=Lineage Logistics enters joint venture with SK Logistics in Vietnam|url=https://www.crainsdetroit.com/mergers-acquisitions/lineage-logistics-enters-jv-sk-logistics-vietnam|website=crainsdetroit.com|access-date=2024-02-26}}</ref> |
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In October 2023, Lineage acquired the warehousing and e-commerce assets of Burris Logistics. This deal included eight facilities across six states, adding nearly 1.3 million square feet to Lineage's network.<ref>{{Cite web |title=Lineage Logistics buys eight cold storage facilities from Burris {{!}} DC Velocity |url=https://www.dcvelocity.com/articles/58777-lineage-logistics-buys-eight-cold-storage-facilities-from-burris |access-date=2023-12-20 |website=www.dcvelocity.com |language=en}}</ref><ref>{{Cite web |last=Kalinoski |first=Gail |date=2023-10-04 |title=Lineage Logistics Buys 1.3 MSF Cold Storage Portfolio |url=https://www.commercialsearch.com/news/lineage-logistics-buys-1-3-msf-cold-storage-portfolio/ |access-date=2023-12-20 |website=Commercial Property Executive |language=en-US}}</ref> |
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Some researchers (Friesen & Swift, 2009) believe that the underpricing of IPOs is less a deliberate act on the part of issuers and/or underwriters, and more the result of an over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for determining to underprice is through the use of [[IPO underpricing algorithm]]s. Other researchers have discovered that firms with higher revenues from licensing-based technology commercialization exhibit greater IPO underpricing, while a firm's stock of patents mitigates this effect. <ref>{{Cite journal|last1=Morricone |first1=Serena |last2=Munari |first2=Federico |last3=Oriani |first3=Raffaele |last4=de Rassenfosse|first4=Gaétan|title=Commercialization Strategy and IPO Underpricing|date=2017|url=http://cdm-it.epfl.ch/RePEc/iip-wpaper/commercialization_strategy_and_IPO_underpricing.pdf|journal=Research Policy|volume=46|issue=6|pages=1133–1141|doi=10.2139/ssrn.2966036 |s2cid=157454297 |author-link4=Gaétan de Rassenfosse}}</ref> |
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==Lineage Foundation for Good== |
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====Dutch auction==== |
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In October 2021, Lineage announced the launch of Lineage Foundation for Good, the independent philanthropic arm of Lineage. The Foundation was created by a $3 million gift from Lineage to support the company's philanthropic efforts and support initiatives and organizations that align to its mission and work towards innovative and sustainable solutions to help reduce food waste and fight food insecurity.<ref name=mmhfoundation>{{Cite web|title=Lineage Logistics launches nonprofit Lineage Foundation for Good|url=https://www.mmh.com/article/lineage_logistics_launches_nonprofit_lineage_foundation_for_good/Lineage_Logistics|website=mmh.com|access-date=2024-06-10}}</ref> |
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A [[Dutch auction]] allows shares of an initial public offering to be allocated based only on price aggressiveness, with all successful bidders paying the same price per share.<ref>{{cite web |last=Demos |first=Telis |date=21 June 2012 |url=https://blogs.wsj.com/deals/2012/06/21/exactly-what-is-a-dutch-auction/ |title=What Is a Dutch Auction? |work=The Wall Street Journal |access-date=16 October 2012 |url-access=subscription}}</ref><ref>{{cite web |url=http://www.slate.com/articles/news_and_politics/explainer/1999/05/what_is_a_dutch_auction_ipo.html |title=What Is a Dutch Auction IPO? |date=6 May 1999 |work=Slate Magazine |access-date=16 October 2012 }}</ref> One version of the Dutch auction is [[OpenIPO]], which is based on an auction system designed by economist [[William Vickrey]]. This auction method ranks bids from highest to lowest, then accepts the highest bids that allow all shares to be sold, with all winning bidders paying the same price. It is similar to the model used to auction [[United States Treasury security#Treasury bill|Treasury bills]], notes, and bonds since the 1990s. Before this, Treasury bills were auctioned through a discriminatory or pay-what-you-bid auction, in which the various winning bidders each paid the price (or yield) they bid, and thus the various winning bidders did not all pay the same price. Both discriminatory and uniform price or "Dutch" auctions have been used for IPOs in many countries, although only [[uniform price auction]]s have been used so far in the US. Large IPO auctions include Japan Tobacco, Singapore Telecom, BAA Plc and Google (ordered by size of proceeds). |
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In 2022, Lineage facilitated donations of over 2.7 million pounds of food products from customers, issued almost $3 million in grants, and recorded over 5,000 volunteer hours via the Lineage Foundation for Good during its first year as a public charity. The same year, Lineage Hardship Fund launched to provide assistance to team members impacted by hardships ,providing over $622,000 in 2022 to support 152 team members and their families through the Lineage Foundation for Good.<ref>{{Cite web|title=Lineage Logistics releases inaugural sustainability report|url=https://www.thepacker.com/news/sustainability/lineage-logistics-releases-inaugural-sustainability-report|website=thepacker.com|access-date=2024-06-10}}</ref> |
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A variation of the Dutch auction has been used to take a number of U.S. companies public including [[Morningstar, Inc.|Morningstar]], [[Interactive Brokers Group]], [[Overstock.com]], Ravenswood Winery, Clean Energy Fuels, and [[Boston Beer Company]].<ref>{{cite news|url=https://www.nytimes.com/2012/02/19/your-money/an-ipo-process-that-is-customer-friendly.html?pagewanted=all&_r=0 | work=The New York Times | first=Jeff | last=Sommer | title=No Bitter Aftertaste From This Stock Offering | date=18 February 2012 |url-access=limited}}</ref> In 2004, Google used the Dutch auction system for its initial public offering.<ref>{{cite web|url=http://www.law.umaryland.edu/academics/journals/jbtl/issues/3_1/3_1_041_Hild.pdf|title=Journal of Business & Technology Law – Academic Journals – University of Maryland Francis King Carey School of Law|access-date=27 November 2016|url-status=dead|archive-date=27 October 2011|archive-url=https://web.archive.org/web/20111027131306/http://www.law.umaryland.edu/academics/journals/jbtl/issues/3_1/3_1_041_Hild.pdf}}</ref> Traditional U.S. investment banks have shown resistance to the idea of using an auction process to engage in public securities offerings. The auction method allows for equal access to the allocation of shares and eliminates the favorable treatment accorded important clients by the underwriters in conventional IPOs. In the face of this resistance, the Dutch auction is still a little used method in U.S. public offerings, although there have been hundreds of auction IPOs in other countries. |
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The Foundation has partnered with organizations including Feeding America and Global FoodBanking Network to help provide meals to those in need.<ref name=mmhfoundation /> In 2023, Lineage and the Foundation sponsored DC Central Kitchen's Capital Food Fight and partnered with Forgotten Harvest to supply nearly 12,000 metro Detroit households with holiday meal boxes.<ref>{{Cite web|title=Donor List FY2023|url=https://dccentralkitchen.org/donor-list-fy2023/|website=dccentralkitchen.org|access-date=2024-06-10}}</ref><ref>{{Cite web|title=Forgotten Harvest’s Hope for the Holidays to Bring Food Relief|url=https://www.forgottenharvest.org/forgotten-harvests-hope-for-the-holidays-to-bring-food-relief/|website=forgottenharvest.org|access-date=2024-06-10}}</ref> Also in 2023, the Foundation announced a new partnership with [[Jared Goff]], quarterback for the [[Detroit Lions]] and global ambassador for the Foundation, to donate meals for every touchdown the quarterback threw and to provide meals to families in need during the holidays.<ref>{{Cite web|title=Detroit Lions, Kroger, Lineage Foundation for Good tackle Detroit food insecurity this Thanksgiving with Gleaners Community Food Bank|url=https://www.detroitlions.com/news/detroit-lions-kroger-lineage-foundation-for-good-tackle-detroit-food-insecurity-|website=detroitlions.com|access-date=2024-06-10}}</ref><ref>{{Cite web|title=Detroit QB Touchdowns Equal Thousands of Meals Donated by Lineage Foundation for Good|url=https://www.refrigeratedfrozenfood.com/articles/102107-detroit-qb-touchdowns-equal-thousands-of-meals-donated-by-lineage-logistics-foundation-for-good|website=refrigeratedfrozenfood.com|access-date=2024-06-10}}</ref> |
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In determining the success or failure of a Dutch auction, one must consider competing objectives.<ref>{{cite web |last=Hensel |first=Nayantara |date=4 November 2005 |url=http://hbswk.hbs.edu/archive/4747.html |title=Are Dutch Auctions Right for Your IPO? |publisher=Harvard Business School |work=Working Knowledge |access-date=16 October 2012}}</ref><ref>{{cite web |url=http://law.bepress.com/cgi/viewcontent.cgi?article=3706&context=expresso |title=Is The Dutch Auction IPO A Good Idea? |publisher=Queen's University |last=Anand |first=Anita Indira |series=Queen's University Law and Economics Workshop |access-date=21 July 2021}}</ref> If the objective is to reduce risk, a traditional IPO may be more effective because the underwriter manages the process, rather than leaving the outcome in part to random chance in terms of who chooses to bid or what strategy each bidder chooses to follow. From the viewpoint of the investor, the Dutch auction allows everyone equal access. Moreover, some forms of the Dutch auction allow the underwriter to be more active in coordinating bids and even communicating general auction trends to some bidders during the bidding period. Some have also argued that a uniform price auction is more effective at [[price discovery]], although the theory behind this is based on the assumption of independent private values (that the value of IPO shares to each bidder is entirely independent of their value to others, even though the shares will shortly be traded on the aftermarket). Theory that incorporates assumptions more appropriate to IPOs does not find that sealed bid auctions are an effective form of price discovery, although possibly some modified form of auction might give a better result. |
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==Facilities== |
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In addition to the extensive international evidence that auctions have not been popular for IPOs, there is no U.S. evidence to indicate that the Dutch auction fares any better than the traditional IPO in an unwelcoming market environment. A Dutch auction IPO by WhiteGlove Health, Inc., announced in May 2011 was postponed in September of that year, after several failed attempts to price. An article in ''[[the Wall Street Journal]]'' cited the reasons as "broader stock-market [[volatility (finance)|volatility]] and uncertainty about the global economy have made investors wary of investing in new stocks".<ref>{{cite web |url=http://www.statesman.com/news/business/whiteglove-seeks-to-raise-325-million-in-dutch-auc/nRZg9/ |title=WhiteGlove seeks to raise $32.5 million in 'Dutch auction' IPO |work=Statesman |access-date=16 October 2012 |url-status=dead |archive-date=4 November 2013 |archive-url=https://web.archive.org/web/20131104211516/http://www.statesman.com/news/business/whiteglove-seeks-to-raise-325-million-in-dutch-auc/nRZg9/ }}</ref><ref>{{cite web |last=Cowan |first=Lynn |date=21 September 2011 |url=https://www.wsj.com/articles/SB10001424053111903791504576584711472079724 |title=WhiteGlove Health Shelves IPO Indefinitely |work=The Wall Street Journal |access-date=16 October 2012 |url-access=subscription}}</ref> |
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Lineage is headquartered in Novi, Michigan, with additional offices around the world. It operates about 223 facilities in North America, including in 37 U.S. states, and warehouses in Australia, Belgium, Canada, China, Denmark, France, Germany, Italy, the Netherlands, New Zealand, Norway, Peru, Poland, Singapore, Spain, Sri Lanka, the United Kingdom, and Vietnam.<ref>{{Cite web|title=Find a Facility|url=https://www.onelineage.com/find-facility|website=onelineage.com|access-date=2024-02-26}}</ref><ref name=":0" /> |
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===Quiet period=== |
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{{Main|Quiet period}} |
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Under American securities law, there are two-time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's [[SEC Form S-1|S-1]] but before SEC staff declare the registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005). |
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The other "quiet period" refers to a period of 10 calendar days following an IPO's first day of public trading.<ref name="finra.org">{{cite web |url=http://www.finra.org/sites/default/files/notice_doc_file_ref/Regulatory-Notice-15-30.pdf |title=Regulatory Notice 15-30: Equity Research |publisher=FINRA |access-date=21 July 2021 }}</ref> During this time, insiders and any underwriters involved in the IPO are restricted from issuing any earnings forecasts or research reports for the company. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. A three-day waiting period exists for any member that has acted as a manager or co-manager in a secondary offering.<ref name="finra.org"/> |
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===Delivery of shares=== |
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Not all IPOs are eligible for delivery settlement through the [[Depository Trust & Clearing Corporation|DTC system]], which would then either require the physical delivery of the [[stock certificate]]s to the clearing agent bank's custodian or a [[delivery versus payment]] (DVP) arrangement with the selling group firm. |
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===Stag profit (flipping)=== |
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"Stag profit" is a situation in the stock market before and immediately after a company's initial public offering (or any new issue of shares). A "stag" is a party or individual who subscribes to the new issue expecting the price of the stock to rise immediately upon the start of trading. Thus, stag [[Profit (accounting)|profit]] is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around "[[flipping]]" or selling them on the first day of trading. |
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==Largest IPOs== |
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{| class="wikitable sortable" |
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|- |
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! Company || Year of IPO || Amount || Inflation adjusted |
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|- |
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| [[Saudi Aramco]] || 2019 || $29.4B<ref name=":0">{{Cite web|url=https://arab.news/pj8d2|title=Aramco's 'greenshoe option' pushes IPO to $29.4 billion|date=12 January 2020|website=Arab News|language=en|access-date=15 January 2020}}</ref>|| ${{Inflation|US|29.4|2019|fmt=c|r=2}} billion |
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|- |
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| [[Alibaba Group]] || 2014 || $25B<ref>{{cite news |url=https://www.wsj.com/articles/alibaba-ipo-biggest-in-history-as-bankers-exercise-green-shoe-option-1411334271 |work=The New York Times |title=Alibaba IPO Biggest in History as Bankers Exercise 'Green Shoe' Option |date=18 September 2013 }}</ref> || ${{Inflation|US|25|2014|fmt=c|r=2}} billion |
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|- |
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| [[SoftBank Group]] || 2018 || $23.5B<ref>{{cite news |url=http://fortune.com/2018/12/11/softbank-ipo-record/ |work=Fortune.com |title=Softbank Corp IPO Second Biggest in History|date=11 December 2018 }}</ref> || ${{Inflation|US|23.5|2018|fmt=c|r=2}} billion |
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|- |
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| [[Agricultural Bank of China]] || 2010 || $22.1B<ref>{{cite news |url=https://www.bloomberg.com/news/2010-08-15/agricultural-bank-of-china-sets-ipo-record-with-22-1-billion-boosted-sale.html |work=Bloomberg |title=Agricultural Bank of China Sets IPO Record as Size Raised to $22.1 Billion |date=15 August 2010 }}</ref> || ${{Inflation|US|22.1|2010|fmt=c|r=2}} billion |
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|- |
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| [[Industrial and Commercial Bank of China]] || 2006 || $21.9B<ref>{{cite news |url=https://www.bloomberg.com/news/2010-07-28/icbc-to-seek-as-much-as-6-6-billion-in-rights-offer-to-replenish-capital.html |work=Bloomberg |title=ICBC completed its record $21.9 billion IPO in October 2006 |date=28 July 2010 }}</ref> || ${{Inflation|US|21.9|2006|fmt=c|r=2}} billion |
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|- |
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| [[AIA Group|American International Assurance]] || 2010 || $20.5B<ref>{{cite news |url=https://www.bloomberg.com/news/2010-10-29/aia-s-ipo-boosted-to-20-5-billion-with-overallotment-update1-.html |work=Bloomberg |title=AIA's IPO Boosted to $20.5 Billion With Overallotment |date=29 October 2010 }}</ref> || ${{Inflation|US|20.5|2010|fmt=c|r=2}} billion |
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|- |
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| [[Visa Inc.]] || 2008 || $19.7B<ref name=wsjip>{{cite news |url=https://blogs.wsj.com/deals/2010/11/17/how-gms-ipo-stacks-up-against-the-biggest-ipos-on-record/ |newspaper=[[The Wall Street Journal]] |title=How GM's IPO Stacks Up Against the Biggest IPOs on Record |date=17 November 2010 |first=Stephen |last=Grocer }}</ref> || ${{Inflation|US|19.7|2008|fmt=c|r=2}} billion |
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|- |
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| [[General Motors]] || 2010 || $18.15B<ref>{{citation |url=https://www.bloomberg.com/news/2010-11-26/gm-says-total-offering-size-23-1-billion-including-overallotment-options.html |work=Bloomberg |title=GM Says Total Offering Size $23.1 Billion Including Overallotment Options |date=26 November 2010 }}</ref> || ${{Inflation|US|18.15|2010|fmt=c|r=2}} billion |
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|- |
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| [[NTT Docomo]] || 1998 || $18.05B<ref name=wsjip/> || ${{Inflation|US|18.05|1998|fmt=c|r=2}} billion |
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|- |
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| [[Enel]] || 1999 || $16.59B<ref name=wsjip/> || ${{Inflation|US|16.59|1999|fmt=c|r=2}} billion |
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|- |
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| [[Meta Platforms|Facebook]]|| 2012 || $16.01B<ref>{{citation|url=https://dealbook.nytimes.com/2012/05/17/facebook-raises-16-billion-in-i-p-o/ |newspaper= [[The New York Times]] |title=Facebook Raises $16 Billion in I.P.O.|date=17 May 2012|first1=Evelyn M.|last1=Rusli|first2=Peter|last2=Eavis}}</ref> || ${{Inflation|US|16.01|2012|fmt=c|r=2}} billion |
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|} |
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==Largest IPO markets== |
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Prior to 2009, the United States was the leading issuer of IPOs in terms of total value. Since that time, however, China ([[Shanghai Stock Exchange|Shanghai]], [[Shenzhen Stock Exchange|Shenzhen]] and [[Hong Kong Stock Exchange|Hong Kong]]) has been the leading issuer, raising $73 billion (almost double the amount of money raised on the [[New York Stock Exchange]] and [[Nasdaq]] combined) up to the end of November 2011. |
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{| class="wikitable sortable" |
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|- |
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! Year || Stock exchange || Proceeds (in bn USD) |
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|- |
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| 2009 || rowspan="3"| [[Hong Kong Stock Exchange]]<ref>{{cite news |url=http://www.ft.com/intl/cms/s/0/d9733718-2c4a-11e1-b7df-00144feabdc0.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/intl/cms/s/0/d9733718-2c4a-11e1-b7df-00144feabdc0.html |archive-date=10 December 2022 |url-access=subscription |title=China eclipses US as top IPO venue |newspaper=Financial Times |date=28 December 2011}}</ref> || |
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|- |
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| 2010 || |
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|- |
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| 2011 || |
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|- |
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| 2012<ref>{{Cite web|url=https://www2.deloitte.com/cn/en/pages/about-deloitte/articles/pr-statistics-hongkong-mainland-ipo2012.html |
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|title = Deloitte releases statistics on Hong Kong and Mainland IPOs in 2012 | Deloitte China | Press Release}}</ref> || rowspan="3"| [[New York Stock Exchange]] || |
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|- |
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| 2013<ref name="cnbc">{{Cite web|url=https://www.cnbc.com/2014/12/18/global-ipo-market-booms-50-in-2014.html|title=Global IPO market booms 50% in 2014|website=[[CNBC]]|date=18 December 2014}}</ref> || |
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|- |
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| 2014<ref name="cnbc" /> || |
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|- |
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| 2015<ref name="FT">{{Cite news|url=https://www.ft.com/content/ae9e6500-e69b-11e7-8b99-0191e45377ec |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/ae9e6500-e69b-11e7-8b99-0191e45377ec |archive-date=10 December 2022 |url-access=subscription|title=Global number of IPOs highest since financial crisis|newspaper=Financial Times|date=27 December 2017|last1=Bullock|first1=Nicole}}</ref> || rowspan="2"| [[Hong Kong Stock Exchange]] || |
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|- |
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| 2016<ref name="FT" /> || 25.2 |
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|- |
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| 2017<ref name="FT" /> || [[New York Stock Exchange]] || 29.4 |
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|- |
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| 2018<ref>{{Cite web|url=https://www.scmp.com/business/companies/article/2179283/hong-kong-easily-regains-2018-global-ipo-crown-new-york-thanks|title=Hong Kong regains global IPO crown from New York in 2018 thanks to its listing reforms|date=24 December 2018}}</ref> || rowspan="2"| [[Hong Kong Stock Exchange]] || 31.2 |
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|- |
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| 2019<ref>{{Cite web|title=Hong Kong Ranks Top in Global IPO Markets for 2019|url=https://www.caixinglobal.com/2019-12-18/hong-kong-ranks-top-in-global-ipo-markets-for-2019-101495294.html|access-date=2021-11-26|website=[[Caixin]]|language=en}}</ref> || 40.4 |
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|- |
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| 2020<ref>{{Cite web|url=http://www.xinhuanet.com/english/2021-01/13/c_139664764.htm#:~:text=The%20report%20said%20Nasdaq%20topped,listed%20in%20HKEX%20to%202%2C538.|title=Hong Kong ranks as 2nd largest IPO market in 2020|date=13 January 2021}}</ref> || rowspan="2"| [[Nasdaq]] || 57.8 |
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|- |
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| 2021<ref>{{Cite web|url=https://home.kpmg/content/dam/kpmg/cn/pdf/en/2021/12/china-hk-ipo-2021-review-and-outlook-for-2022.pdf|title=Mainland China and Hong Kong IPO markets - 2021 review and 2022 outlook |accessdate= 26 December 2021}}</ref> || 100.6 |
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|- |
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| 2022<ref>{{Cite web|url=https://assets.kpmg.com/content/dam/kpmg/cn/pdf/en/2023/03/china-hk-ipo-2023-q1-review.pdf |title= Chinese Mainland and Hong Kong IPO markets 2023 Q1 review |accessdate= 24 June 2023}}</ref> || rowspan="2"| [[Shanghai Stock Exchange]] || 56.5 |
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|- |
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| 2023<ref>{{Cite web|url= https://assets.kpmg.com/content/dam/kpmg/cn/pdf/en/2024/01/china-hk-ipo-markets-2023-review-and-2024-outlook.pdf |title= Chinese Mainland and Hong Kong IPO markets 2023 and 2024 outlook |accessdate= 29 January 2024}}</ref> || 31.3 |
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|- |
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| 2024 Q1<ref>{{Cite web|url=https://assets.kpmg.com/content/dam/kpmg/cn/pdf/en/2024/04/china-hk-ipo-2024-q1-review.pdf |title= Chinese Mainland and Hong Kong IPO markets 2024 Q1 review |accessdate= 30 May 2024}}</ref> || rowspan="2"| [[New York Stock Exchange]] || 4.8 |
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|} |
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==See also== |
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*[[Alternative public offering]] |
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*[[Direct public offering]] |
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*[[Public offering without listing]] |
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*[[Reverse takeover]] |
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*[[Smaller reporting company]] |
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*[[Special-purpose acquisition company]] |
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*[[Venture capital]] |
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==References== |
==References== |
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{{ |
{{reflist}} |
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==Further reading== |
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{{Refbegin|30em}} |
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* {{Cite news |last=Anderlini |first=Jamil |title=AgBank IPO officially the world's biggest |url=http://www.ft.com/cms/s/0/ff7d528c-a6bc-11df-8d1e-00144feabdc0.html?ftcamp=rss |newspaper=[[Financial Times]] |date=13 August 2010 |access-date=13 August 2010 }} |
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* {{Cite news |title=Pricing the 'biggest IPO in history' |url=http://www.atimes.com/atimes/China_Business/HI29Cb01.html |archive-url=https://web.archive.org/web/20081205051941/http://www.atimes.com/atimes/China_Business/HI29Cb01.html |url-status=dead |archive-date=5 December 2008 |department=China Business |work=Asia Times |date=2006-09-29 |access-date=2011-09-21}} |
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* {{Cite journal |last1=Bradley |first1=D. J. |last2=Jordan |first2=B. D. |last3=Ritter |first3=J. R. |year=2003 |title=The Quiet Period Goes Out with a Bang |journal=Journal of Finance |volume=58 |issue=1 |pages=1–36 |citeseerx=10.1.1.535.3111 |doi=10.1111/1540-6261.00517}} |
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* {{Cite book |last=Campbell |first=Dakin |year=2022 |title=Going Public: How Silicon Valley Rebels Loosened Wall Street's Grip on the IPO and Sparked a Revolution |location=New York |publisher=Twelve |isbn=9781538707883 |oclc=1257292746}} |
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* Chambers, Clem (2006-07-14). [http://www.mondovisione.com/exchanges/handbook-articles/who-needs-stock-exchanges/ "Who needs stock exchanges?"] ''Exchanges Handbook''. Mondo Visione. Accessed 21 September 2011. |
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* {{Cite book |last1=Drucker |first1=Steven |first2=M. |last2=Puri |year=2007 |chapter=Banks in Capital Markets |title=Handbook of Corporate Finance |volume=1 |editor-first=B. E. |editor-last=Eckbo |location=Boston |publisher=Elsevier |isbn=978-0-444-50898-0 }} |
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* {{Cite journal |last1=Friesen |first1=Geoffrey C. |last2=Swift |first2=Christopher |year=2009 |title=Overreaction in the thrift IPO aftermarket |url=http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1004&context=financefacpub |journal=Journal of Banking & Finance |volume=33 |issue=7 |pages=1285–1298 |doi=10.1016/j.jbankfin.2009.01.002 }} |
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* {{Cite journal |last1=Goergen |first1=M. |last2=Khurshed |first2=A. |last3=Mudambi |first3=R. |year=2006 |title=The Strategy of Going Public: How UK Firms Choose Their Listing Contracts |journal=Journal of Business Finance and Accounting |volume=33 |issue=1&2 |pages=306–328 |doi=10.1111/j.1468-5957.2006.00657.x |s2cid=153405433 |ssrn=886408}} |
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* {{Cite journal |last1=Goergen |first1=M. |last2=Khurshed |first2=A. |last3=Mudambi |first3=R. |year=2007 |title=The Long-run Performance of UK IPOs: Can it be Predicted? |journal=Managerial Finance |volume=33 |issue=6 |doi=10.1108/03074350710748759 |pages=401–419 }} |
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* {{Cite book |last=Gregoriou |first=Greg |year=2006 |title=Initial Public Offerings (IPOs) |url=http://books.elsevier.com/finance/?isbn=0750679751 |publisher=Butterworth-Heineman, an imprint of Elsevier |isbn=978-0-7506-7975-6 |access-date=15 June 2006 |archive-url=https://web.archive.org/web/20070314010926/http://books.elsevier.com/finance/?isbn=0750679751 |archive-date=14 March 2007 |url-status=dead}} |
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* Hu, Bei and Vannucci, Cecile. [https://www.bloomberg.com/news/2010-10-28/aia-will-have-hong-kong-trading-debut-today-after-rising-in-gray-market-.html Bloomberg.com] Published 2010-10-29. Retrieved 2011-09-21 |
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* {{Cite web |title=IPO Definitions |url=http://www.ipoinitialpublicofferings.com/ipo-definitions.htm |archive-url=https://web.archive.org/web/20110821115314/http://www.ipoinitialpublicofferings.com/ipo-definitions.htm |archive-date=21 August 2011 |url-status=dead |publisher=IPO Initial Public Offerings |access-date=14 September 2011}} |
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* {{Cite journal |last1=Khurshed |first1=A. |last2=Mudambi |first2=R. |year=2002 |title=The Short Run Price Performance of Investment Trust IPOs on the UK Main Market |journal=Applied Financial Economics |volume=12 |issue=10 |pages=697–706 |doi=10.1080/09603100010025706 |s2cid=55180392 }} |
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* {{Cite journal |last1=Loughran |first1=T. |last2=Ritter |first2=J. R. |year=2002 |title=Why Don't Issuers Get Upset About Leaving Money on the Table in IPOs? |journal=Review of Financial Studies |volume=15 |issue=2 |doi=10.1093/rfs/15.2.413 |pages=413–443 }} |
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* {{Cite journal |last1=Loughran |first1=T. |last2=Ritter |first2=J. R. |year=2004 |title=Why Has IPO Underpricing Changed Over Time? |url=http://bear.cba.ufl.edu/ritter/publ_papers/Why%20has%20IPO%20Underpricing%20Changed%20Over%20Time.pdf |journal=Financial Management |volume=33 |issue=3 |pages=5–37 }} |
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* {{Cite journal |last1=Mudambi |first1=R. |last2=Treichel |first2=M. Z. |year=2005 |title=Cash Crisis in Newly Public Internet-based Firms: An Empirical Analysis |journal=Journal of Business Venturing |volume=20 |issue=4 |doi=10.1016/j.jbusvent.2004.03.003 |pages=543–571 }} |
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* {{Cite news |title=Quiet Period |date=18 August 2005 |url=https://www.sec.gov/answers/quiet.htm |publisher=[[U.S. Securities and Exchange Commission]] |access-date=4 March 2008 }} |
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{{Refend}} |
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==External links== |
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*[https://www.nasdaq.com/market-activity/ipos Nasdaq database of all U.S. Initial Public Offerings beginning Jan. 1997] |
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{{US logistics}} |
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{{Corporate finance and investment banking}} |
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{{stock market}} |
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{{Authority control}} |
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[[Category:Transport companies established in 2012]] |
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{{DEFAULTSORT:Initial Public Offering}} |
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[[Category: |
[[Category:Logistics companies of the United States]] |
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[[Category: |
[[Category:Supply chain management]] |
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[[Category: |
[[Category:Transportation companies based in Michigan]] |
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Revision as of 18:06, 10 June 2024
 | |
| Company type | Private |
|---|---|
| Industry | Warehousing and supply chain logistics |
| Founded | April 18, 2012 in Colton, California, United States |
| Headquarters | Novi, Michigan |
Area served | North America, Europe, Asia-Pacific |
Key people | Greg Lehmkuhl, CEO and president |
Number of employees | 26,000[1] |
| Parent | Bay Grove Capital, LLC |
| Website | www |
Lineage Logistics is the world's largest temperature-controlled warehouse real estate investment trust (REIT), owned by Bay Grove, LLC.[2][3][4] Entering international markets in 2017, Lineage grew into the world's largest refrigerated warehousing company with a capacity exceeding 3 billion cubic feet and acquiring more than 100 companies through the end of 2023.[5][6] Lineage operates over 450 facilities across 18 countries, with approximately 26,000 team members globally in North America, Europe, and Asia Pacific.[7][8]
History
The company was founded in April 2012 by former Morgan Stanley investment bankers Kevin Marchetti and Adam Forste, who formed Bay Grove Capital, LLC, through the consolidation of acquired warehousing and logistics companies beginning, in December 2008, with the purchase of Seafreeze from Toyo Susian Kaisha.[9] The company then acquired CityIce, in 2009, and Flint River Services, in 2010, followed, in 2011, by Terminal Freezers of Santa Maria, California, and Richmond Cold Storage, purchased from Atlanta Equity.
Lineage was formed with the fifth-largest network of temperature-controlled warehouse facilities in North America in 2012, according to International Association of Refrigerated Warehouses (IARW) rankings, with 40 facilities in eight states, including near international ports at Savannah, Georgia, Seattle, Washington and Norfolk, Virginia; as well as providing warehouse management, consulting, and food processing support.[9]
In a March 2021 interview with Bloomberg, Lineage CEO Greg Lehmkuhl said the company is actively preparing its IPO.[4]
Operations and technology
By 2015, Lineage's facility network was ranked the second-largest in the world by the International Association of Refrigerated Warehouses. With 111 facilities in 21 states, Lineage also ranked as the second largest temperature-controlled warehousing and logistics company in the United States.[10]
In September 2020, Lineage raised $1.6 billion in equity for technology and expansion.[11]
In March 2021, Lineage raised $1.9 billion in equity for global greenfield developments, facility expansions, M&A and research and development.[12]
In July 2021, Lineage partnered with 8VC logistics technology venture capital firm, to further invest in the transportation and logistics technology sector.[13]
In November 2023, Lineage expanded and established Harnes (Pas-de-Calais) as its European logistics hub by opening a new 17,000 m2 (180,000 sq ft) state-of-the-art modern cold storage facility.[14]
As of March 2024, Lineage has been granted over 75 patents registered across multiple jurisdictions, related to technological developments within the temperature-controlled logistics sector.[15]
Acquisitions and expansion
In 2012, the company acquired Stanford Refrigerated Warehouses and Castle & Cooke Cold Storage; Bill Hendricksen of Castle & Cooke then joined Lineage as CEO.[16] Hendricksen was succeeded by W. Gregory Lehmkuhl, in July 2015.[10] Lineage subsequently moved its headquarters from Irvine, California to Novi, Michigan.[17][18]
In April 2013, the company received a $220 million loan,[19] and acquired Seattle Cold Storage and a University Park, Illinois facility.[20] By 2014, most Lineage customers were food producers requiring cold chain warehousing, transportation, and logistics; to meet demand, the company concentrated on automation and acquisition.[21] In March 2014, the company agreed to purchase Millard Refrigerated Services for about $1 billion, its largest acquisition to date,[21] making Lineage "the second-largest temperature-controlled warehousing and logistics company in the world."[22] In the same year, Lineage acquired Loop Cold Storage, Oneida Cold Storage & Warehouse, Murphy Overseas, and two facilities in Watsonville, California from Dreisbach Enterprises and in September 2014, opened a new temperature-controlled warehouse in Santa Maria, California.[3]
In January 2015, Lineage acquired the Pacific Northwest cold storage facilities of Columbia Colstor, headquartered in Moses Lake, Washington.[23]
In May 2016, the company opened a $150 million temperature-controlled warehouse in North Charleston, South Carolina, near the Port of Charleston,[24] then acquired Consolidated Distribution Corporation of Lombard, Illinois that August,[10] making Lineage the largest customized redistribution network in the United States.[25] Two months later, it was reported that Lineage was considering locating a large facility at New Century AirCenter in Gardner, Kansas,[26] but the proposed location resulted in lawsuits from local residents,[26] and Lineage scrapped the project in November 2017 "due to a change in customer needs",[26][27] though the project had received unanimous approval from county commissioners in July.[26][27]
Lineage entered European markets in 2017, acquiring Partner Logistics, a large cold-chain storage supplier.[20] The company purchased facilities from American Cold Storage, in the Midwest, and eight Los Angeles, California area warehouses from U.S. Growers Cold Storage,[2] raising its employee roster to 7,200, with Lineage operating 120 temperature-controlled storage facilities.[9]
The company then expanded into the temperature-controlled logistics markets in Australia, New Zealand, and Sri Lanka, in November 2019, with the acquisition of Emergent Cold,[28] then into Canada, in July 2020, acquiring Ontario Refrigerated Services Inc.[29]
During 2018, the company acquired 24 companies, including The Yearsley Group, the UK's largest Cold Storage and Haulage supplier, maintaining its second-largest status.[30] The company also sold minority stakes worth $700 million. Company real estate holdings were estimated at $4 billion in value.[5]
Also in 2018, Stonepeak Partners, D1 Capital Partners, and existing backers acquired minority stakes in the company valued at $700 million.[5]
On February 25, 2019 The Wall Street Journal reported the company's acquisition of Preferred Freezer Services LLC., its largest competitor, in a deal reportedly worth over $1 billion, expanding Lineage to the world's largest facility network, with 1.3 billion cubic feet of storage in over 200 facilities across the United States, Europe, and Asia.[7][31]
On May 22, 2020 Lineage acquired the distribution assets of one of the largest independent Food Distribution companies in the country for over 100 years, Maines Paper & Food, Inc, based in Conklin, New York.[31] That June, the company acquired Emergent Cold, Australia's largest cold-chain supplier, and New Orleans Cold Storage, with four port facilities in New Orleans, Louisiana, Houston, Texas and Charleston, South Carolina.[28]
In July, Lineage acquired Henningsen Cold Storage, based in Portland, Oregon, with 14 cold storage facilities located mainly in Oregon and Washington, raising its employee roster to 16,000.[32] This acquisition raised Lineage's global storage capacity to 50,660,000 m3 (1.789×109 cu ft). [33]
On December 1, 2020, Lineage acquired Pago, a warehousing, distribution and transport logistics provider in Poland.[34]
In May 2021, Lineage acquired Crystal Creek e-commerce fulfillment logistics operator and its five U.S. warehouses,[35] increasing the company's acquisitions to 72.[36] The same month, Lineage entered the Spanish marketplace, acquiring cold storage firm Frigorificos de Navarra of Gijón, Spain from Frioastur and, in June 2021, entered the European freight industry with its acquisition of Rotterdam-based UTI Forwarding,[37] and also acquired Kloosterboer Group in Europe, and the cold storage division of Claus Sorensen Group in Denmark.[38] In November 2021, Lineage expanded into the Italian cold storage market with the acquisition of Kantaro SRL.[39]
In January 2022, Lineage continued its expansion by acquiring Auscold Logistics in South Australia.[40] In the same month, Lineage also acquired Van Tuyl Logistics, as well as individual locations from H&S Coldstores in Beneden-Leeuwen and Frigocare Rotterdam BV in Rotterdam.[41]
In March, Lineage further expanded its network by acquiring MTC Logistics, adding nearly 38 million cubic feet of capacity and more than 113,000 pallet positions in the United States and its presence at key ports along the U.S. East and Gulf Coasts.[42]
In April, Lineage acquired VersaCold Logistics to expand its presence in Canada.[43] Later in May, the company acquired Mandai Link Logistics to expand into Singapore.[44]
In August, Lineage acquired Cold Storage Nelson in New Zealand. This increased its presence in the Asia-Pacific area.[45]
In August 2023, Lineage expanded its European network by acquiring Grupo Fuentes, a Spanish transport and cold store operator.[46] In addition, Lineage strengthened its presence in northern Vietnam through a joint venture with SK Logistics.[47]
In October 2023, Lineage acquired the warehousing and e-commerce assets of Burris Logistics. This deal included eight facilities across six states, adding nearly 1.3 million square feet to Lineage's network.[48][49]
Lineage Foundation for Good
In October 2021, Lineage announced the launch of Lineage Foundation for Good, the independent philanthropic arm of Lineage. The Foundation was created by a $3 million gift from Lineage to support the company's philanthropic efforts and support initiatives and organizations that align to its mission and work towards innovative and sustainable solutions to help reduce food waste and fight food insecurity.[50]
In 2022, Lineage facilitated donations of over 2.7 million pounds of food products from customers, issued almost $3 million in grants, and recorded over 5,000 volunteer hours via the Lineage Foundation for Good during its first year as a public charity. The same year, Lineage Hardship Fund launched to provide assistance to team members impacted by hardships ,providing over $622,000 in 2022 to support 152 team members and their families through the Lineage Foundation for Good.[51]
The Foundation has partnered with organizations including Feeding America and Global FoodBanking Network to help provide meals to those in need.[50] In 2023, Lineage and the Foundation sponsored DC Central Kitchen's Capital Food Fight and partnered with Forgotten Harvest to supply nearly 12,000 metro Detroit households with holiday meal boxes.[52][53] Also in 2023, the Foundation announced a new partnership with Jared Goff, quarterback for the Detroit Lions and global ambassador for the Foundation, to donate meals for every touchdown the quarterback threw and to provide meals to families in need during the holidays.[54][55]
Facilities
Lineage is headquartered in Novi, Michigan, with additional offices around the world. It operates about 223 facilities in North America, including in 37 U.S. states, and warehouses in Australia, Belgium, Canada, China, Denmark, France, Germany, Italy, the Netherlands, New Zealand, Norway, Peru, Poland, Singapore, Spain, Sri Lanka, the United Kingdom, and Vietnam.[56][33]
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