Lineage (LINE) said Wednesday it will acquire four cold storage warehouses from Tyson Foods (TSN) for $247 million as part of a broader $1 billion plan to expand its US cold-storage footprint.

The acquisition includes 49 million cubic feet of space and 160,000 pallet positions across sites in Pennsylvania, Kansas, Illinois, and Arizona, the company said.

Lineage also plans to build two fully automated facilities in key US distribution markets, which Tyson will occupy under a multi-year agreement.

The two greenfield projects are expected to cost more than $740 million and will add over 80 million cubic feet and 260,000 pallet positions to Lineage's network, Lineage said.

The transaction is set to close in Q2, with Lineage onboarding over 1,000 Tyson employees from the acquired sites.

Shares of Lineage were down more than 2% in recent Wednesday premarket activity.

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