Kenco adds 4 warehouses in Canada as part of 3PL acquisition

Chattanooga, Tennessee-based company gains 100 employees in Ontario deal

Kenco plans to leverage Drexel’s packaging expertise across its platform. (Photo: Jim Allen/FreightWaves)

Third-party logistics provider Kenco announced Monday it has acquired the 3PL arm of Ontario, Canada-based distribution and fulfillment company Drexel Industries.

The deal includes four warehouses in Ontario, serving Toronto, Detroit and Buffalo, New York, as well as 100 employees who will now work for Kenco.

The transaction expands Kenco’s presence in Canada. Financial terms of the deal were not disclosed.

“As Kenco continues to grow, we’ve looked for opportunities to better serve our existing customers across Canada,” Kenco President and CEO Denis Reilly said in a news release. “With Drexel Industries joining the Kenco family, customers of both brands will gain access to a broader network of warehouses and logistics services.”

Drexel’s 3PL business provides dedicated and shared warehousing to B2B and B2C fulfillment platforms. The company also works with sellers on Amazon (NASDAQ: AMZN) and provides brokerage services and reverse logistics. Kenco said it plans to leverage Drexel’s packaging expertise across its platform.

Chattanooga, Tennessee-based Kenco provides numerous supply chain management services in addition to warehousing and fulfillment, like freight brokerage, transportation management and dedicated contract carriage. The company now operates 43 million square feet of warehouse space.

“Blending Kenco’s automation and technology resources with our Canadian market knowledge and warehouses’ proximity to key markets, we’ll empower businesses across North America to reach new levels of distribution efficiency,” said Drexel CEO Jason Salmon.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.