Metro Supply Chain buying SCI

Metro Supply Chain Inc. is buying SCI Group Inc. from Canada Post Corporation and Purolator Holdings Ltd.

Canada Post said the sale process began in 2023 after a detailed review and assessment of Canada Post’s long-term strategic plan. A comprehensive, multi-stage RFP process followed, involving external legal and financial experts to evaluate options and proposals.

The transaction is expected to close in the first quarter of 2024, subject to closing conditions, including the receipt of regulatory approvals.

SCI operates independently with more than 75 locations totalling over four million square feet and employs approximately 3,000. Chris Galindo, president and CEO of SCI, will remain with the combined entity.

“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. ”

Headquartered in Québec, with significant regional 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 president and CEO Chris Fenton said the deal will help “generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering”. He added that the deal will allow for increased operations in the US.

Metro Supply Chain was supported in the transaction by LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada. 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.

“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,” said 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.”