By Eamonn Ryan
During the course of the past year Cold Link Africa has written articles on both the prevalence of private equity firms at the last GCCA Africa conference, as well as the startling number of mergers and acquisitions in HVAC&R both internationally and in South Africa. GCCA’s magazine Cold Facts recently unpacked the subject too with investor relations expert Evan Pondel. This is part two of a four-part series.
The global cold storage industry is undergoing one of the most aggressive consolidation phases in its history. Private equity-backed acquisitions, mergers and platform expansions are rapidly transforming what was once a fragmented network of regional operators into a highly consolidated global logistics sector.
This institutionalisation of cold storage also mirrors broader changes occurring across global infrastructure investment. Just as renewable energy, fibre networks, and data centres became attractive long-term assets, refrigerated logistics is now being recognised as foundational to modern economies.
For Africa, and South Africa in particular, these global trends could have major implications. As export agriculture expands and pharmaceutical distribution networks become more sophisticated, demand for reliable refrigerated infrastructure is likely to increase significantly. The growing involvement of international capital may also accelerate modernisation across regional cold chains, particularly in strategic ports and logistics corridors.
The transformation of cold storage from industrial niche to institutional asset class appears far from complete. If anything, the sector’s importance is only becoming more pronounced as global supply chains place greater emphasis on resilience, traceability and temperature integrity.
Across North America, Europe and increasingly parts of Asia-Pacific, investors are executing ‘roll-up’ strategies – acquiring multiple smaller cold storage businesses and combining them into large integrated networks capable of serving multinational food, pharmaceutical and retail clients.
Cold Facts recently examined this trend through insights from investor relations specialist Evan Pondel, who says the consolidation wave reflects both operational economics and changing customer expectations.
“The playbook is pretty straightforward conceptually. You find a solid regional operator, use it as your platform, and then bolt on adjacent geographies and services over time until you’ve built something no single-site operator can compete with,” Pondel explained.
That strategy has produced some of the world’s largest refrigerated logistics companies. Perhaps the most striking example is Lineage Logistics, now known simply as Lineage. Originally backed by private equity, the business grew from a single warehouse acquisition in 2008 into a global network exceeding 400 facilities. By 2026, the company was pursuing an IPO reportedly valuing the business at more than R500-billion.
Alongside Americold, the two companies now control approximately 71% of North America’s rentable cold storage capacity. That level of concentration would have been almost unimaginable two decades ago.
The scale advantage matters because modern supply chains increasingly demand integrated services rather than isolated warehouse locations. Large food producers, retailers and pharmaceutical companies want end-to-end visibility, standardised operating systems, and geographically diverse networks that can maintain product integrity across multiple regions.
This operational shift is also changing the economics of the sector. Larger networks benefit from centralised procurement, sophisticated inventory systems, transportation co-ordination and automation investments that smaller operators often struggle to afford.
The rise of automation is particularly important. Investors are increasingly funding highly automated facilities incorporating robotics, AI-driven predictive maintenance, automated pallet handling systems and advanced energy optimisation technologies. These facilities improve throughput, reduce labour dependence, and enhance food safety compliance.
Many private equity firms are also embracing ‘OpCo/PropCo’ investment models. Under this structure, the real estate assets are separated from the operating business, allowing investors to extract value both from appreciating property assets and from high-margin logistics services such as blast freezing, pharmaceutical handling and value-added distribution.
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