The Canadian supply chain solutions provider Metro Supply Chain Inc. has agreed to acquire third-party logistics (3PL) company SCI Group Inc. from its owners, Canada Post Corporation and Purolator Holdings Ltd.
According to Montreal-based Metro Supply Chain, buying Toronto-based SCI will strengthen its position as a strategic contract logistics service provider and help it to expand operations into the United States and the United Kingdom.
Metro Supply Chain currently manages 15 million square feet in more than 100 sites across North America and Europe with a team of 6,000 employees. Acquiring SCI will add more than 75 new locations totaling over 4 million square feet and employing more than 3,000 team members.
Terms of the deal were not disclosed, but Metro Supply Chain said it supported the deal through an investment by the Government of Québec through its Investissement Québec division.
"To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region.
Metro Supply Chain is also backed by its financial partners LDC Logistics Holdings Inc., CDPQ, and the National Bank of Canada. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ, said in a release. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom."
In terms of business operations, Metro Supply Chain President and CEO Chris Fenton said the merger would help enhance the company’s expansion efforts south of the border. "The strategic alignment between Metro Supply Chain and SCI is strong,” Fenton said. “We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering."
