NX Group to acquire Metro Supply Chain in deal valued at up to $2.2B

Metro Supply Chain Inc. says its majority shareholder has agreed to sell the company to Japan-based Nippon Express Holdings Inc. in a deal valued at up to $2.2 billion.

The company said LDC Metro Holdings Inc., together with La Caisse, has entered into an agreement to sell the Canadian supply chain provider to NX Group, a global logistics company with operations in more than 50 countries.

“Our philosophy has always been to build strong businesses alongside exceptional management teams and long-term partners,” said Chiko Nanji, founder and group chairman of Metro Supply Chain and chairman of LDC. “With greater resources, and a global network, Metro is well positioned to deepen its presence in Canada, the U.S. and the U.K. and expand into new markets. I’m pleased to remain on the board to support continuity and long-term success, and grateful to our partners at La Caisse and Investissement Québec, as well as our banking partners led by National Bank, for their support through a period of significant value creation.”

The transaction is subject to regulatory approvals and is expected to close in the coming months. Metro Supply Chain said it will continue to operate as usual until the deal is completed.

NX Group has committed to maintaining Metro Supply Chain’s management team and headquarters in Montréal, with day-to-day decision-making remaining local. The company also said there are no plans to materially downsize or relocate the Québec-based workforce.

“This transaction gives Metro Supply Chain access to additional scale and investment, while allowing us to continue operating the business as we do today,” said Chris Fenton, group president and chief executive officer of Metro Supply Chain. “Our leadership remains in place, and our focus continues to be on delivering for our customers. For our customers, this means continuity, with the same teams, no changes to service or existing agreements and over time, the benefit of increased scale and investment.”

“Metro Supply Chain represents a strong strategic fit for our group,” said Satoshi Otsuji, senior managing executive officer of Nippon Express Holdings. “Its capabilities, customer relationships, and market position in North America complement our global network and long-term growth strategy. We look forward to supporting Metro Supply Chain’s continued development while respecting its local leadership and strengths.”

Metro Supply Chain, founded more than 50 years ago, operates across Canada, the United States and the United Kingdom.