Metro Supply Chain Acquires SCI Group
Acquisition reinforces Metro Supply Chain's position as a leading North American and international strategic contract logistics service provider, while adding new verticals to its offering
MONTREAL, Jan. 9, 2024 /PRNewswire/ -- Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd.
This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals.
"We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services."
The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector.
"The strategic alignment between Metro Supply Chain and SCI is strong. 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," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border."
Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider.
Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities.
Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence.
"There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo.
Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity.
"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," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "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."
To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain.
"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.
"This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec.
"Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer."
Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.
TD Securities Inc. is acting as exclusive financial and financing advisor to Metro Supply Chain, while Osler, Hoskin & Harcourt LLP, and Stikeman Elliott LLP are acting as legal advisors to Metro Supply Chain.
Metro Supply Chain is a strategic supply chain solutions partner to some of the world's fastest-growing and most reputable organizations. For almost 50 years, it has excelled at tailoring integrated, data-driven solutions, fueled by advanced systems and technology, that fulfill complex and challenging distribution needs. Managing 15 million square feet in more than 100 sites across North America and Europe with a team of 6,000, it is one of Canada's largest privately owned supply chain solutions companies. In 2023, Metro Supply Chain received the prestigious Best Managed Companies award for its strategic expertise, culture of innovation and commitment to its people and local communities.
SCI makes North American businesses even better by offering its clients in the omni-channel retail, technology, health, beauty and wellness sectors a suite of end-to-end supply chain solutions. For 30 years, its deep-rooted, best-in-class logistics, supply chain, and transportation management expertise has continued to help mid-market clients coast-to-coast and across the border.
SCI manages more than $1 billion of inventory daily through a nationwide network across Canada. It operates more than 75 locations totalling over 4 million square feet and employs more than 3,000 team members.
SCI prides itself on adding value to clients' business by removing friction points and seamlessly delivering on their business strategy. Through continuous improvement processes, business intelligence tools, data-driven insights, and progressive technology, its integrated team of experts are committed to reducing costs, risks and complexity within the supply chain. By optimizing supply chain operations, SCI's clients gain the competitive advantage they need to scale their business.
Media inquiries, please contact: For Metro Supply Chain: Serge Vallières – NATIONAL Public Relations, Director, Corporate Communications, svallieres@national.ca, (438) 372-3575; For CDPQ: Kate Monfette, Director, Media Relations, kmonfette@cdpq.com, (438) 525-2520; For Minister of Economy, Innovation and Energy: Rosalie Tremblay-Cloutier, Policy Advisor, Office of the Minister of the Economy, Innovation and Energy, Rosalie.Cloutier@economie.gouv.qc.ca, (438) 777-3777; For Investissement Québec: Mathieu Rouy, Special Advisor, Media and Government Affairs, Mathieu.Rouy@invest-quebec.com, (438) 827-4143
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