Tyson Foods Sells Four Cold-Storage Facilities to Lineage for $247 Million
Tyson Foods has agreed to sell four of its existing U.S. cold-storage warehouses to Lineage Inc. for $247 million, according to a release from Lineage, a real-estate investment trust (REIT) with more than 480 facilities in North America, Europe and the Asia-Pacific.
In addition, Tyson has agreed to be an anchor customer for Lineage’s two “next-generation,” fully automated cold-storage warehouses in major U.S. distribution markets, and it will begin storing product at Lineage’s Hazelton, Pa., fully automated cold-storage warehouse.
The four warehouses included in the deal add about 49 million cubic feet and 160,000 pallet positions. Their locations are Pottsville, Pa., Olathe, Kan., Rochelle, Ill., and Tolleson, Ariz. Lineage said in the release that it plans to absorb more than 1,000 of the Tyson Foods’ employees there, and that the facilities will transition over time to public warehouses as the newly constructed warehouses are opened. Those new warehouses are expected to cost more than $740 million, and add more than 80 million cubic feet and nearly 260,000 pallet positions.
The transaction is expected to close in the second quarter of 2025.