Tyson Foods Inc. of Springdale (NYSE: TSN) has agreed to sell four cold storage warehouses and other related assets to Lineage Inc. of Novi, Michigan, in a $247 million transaction.
Publicly traded Lineage (Nasdaq: LINE), a cold storage warehouse company that operates as a real estate investment trust, said in a news release that it will onboard about 1,000 Tyson employees as part of the deal.
The facilities in Pottsville, Pennsylvania; Olathe, Kansas; Rochelle, Illinois; and Tolleson, Arizona, total about 49 million cubic feet, a three-dimensional measure of volume.
Under the agreement, Tyson will store products at Lineage’s new, fully-automated cold storage warehouse in Hazelton, Pennsylvania. Lineage will also design, build and operate two fully-automated cold storage warehouses for Tyson to occupy as an anchor tenant. Those developments will add 80 million cubic feet to Lineage’s storage capacity.
Lineage said that over time, as the new warehouses begin operations, the acquired warehouses will transition to public warehouses as part of Lineage’s global footprint.
Lineage expects to spend about $1 billion over the coming years on the acquisitions and the new developments.
The transaction is expected to close in the second quarter of 2025.
The deal represents a new phase in Tyson’s aggressive push toward automation and advanced technology integration across its operations. The meat giant in recent years has invested more than $1 billion to reshape how it processes, packages and distributes its protein products.
Tyson is scheduled to report its fiscal second-quarter earnings on Monday.
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