Tyson Foods sells four cold storage warehouses to Lineage in US$247M deal
Tyson to offload 49 million cubic feet of storage space; Lineage to absorb 1,000 workers and build automated facilities
USA – Tyson Foods has entered into an agreement to sell four of its U.S. cold storage warehouses to Lineage, a major player in temperature-controlled logistics, in a transaction valued at US$247 million.
The facilities included in the deal are located in Pottsville, Pennsylvania; Olathe, Kansas; Rochelle, Illinois; and Tolleson, Arizona.
Combined, the warehouses offer around 49 million cubic feet of storage capacity and hold space for approximately 160,000 pallets.
According to both companies, the transaction is expected to be finalized in the second quarter of 2025, pending standard closing conditions.
As part of the terms, more than 1,000 Tyson employees will transition to Lineage, which plans to convert the sites into public cold storage operations.
This move also builds on an existing collaboration between Tyson and Lineage, expanding the scope of their working relationship.
Lineage to Build Automated Facilities for Tyson
In addition to acquiring the four warehouses, Lineage will construct and operate two new fully automated cold storage facilities on behalf of Tyson in unspecified key U.S. markets.
Tyson will act as the anchor tenant for these projects, securing long-term storage access as part of the arrangement.
The meat processor will also begin using Lineage’s recently launched automated warehouse in Hazleton, Pennsylvania, to store its products.
The facility sales and expansion efforts coincide with expectations that Tyson Foods will report significantly improved financial performance for its second fiscal quarter.
Market analysts anticipate Tyson to post a 34% increase in net income, projecting a quarterly profit of US$296 million compared to US$220 million in the same quarter of 2024.
Revenue for the Springdale-based company is forecast to reach US$13.123 billion, a slight year-over-year increase of 0.5%.
Financial services firm Stephens Inc. believes Tyson could surpass market expectations, estimating earnings at 85 cents per share, driven by stronger-than-anticipated results in its chicken segment.
However, the company’s beef operations are likely to limit overall gains, with ongoing margin pressure due to a lack of heifer retention and continued difficulties for meat packers.
During the quarter, Tyson’s chicken margins averaged 26 cents per pound, which is 10 cents higher than the previous year, supported by strong consumer demand and stable feed prices.
USDA data also shows a 3.2% rise in chicken production volume compared to last year, with indicators such as chick placements and eggs in incubators up by over 2%.
Rising beef prices have led to higher demand for chicken in both retail and foodservice sectors, further supporting profitability.
Wholesale prices for chicken breast meat climbed nearly 40% from the previous year to about US$2.70 per pound, while leg-quarter prices rose 14.6% and wing prices declined 7.8%.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
