Third-party logistics provider Kenco Logistics said Thursday it is being acquired by private equity firm Pritzker Private Capital for an undisclosed sum.
The transaction, which is expected to close during the quarter, will end family-owned Chattanooga, Tennessee-based Kenco’s 72 years as an independent company.
Under the transaction, Pritzker will acquire a majority stake in Kenco. Family members and management will retain a portion of the equity.
Denis Reilly, Kenco’s president and CEO, will continue to run the company. Kenco’s headquarters will remain in Chattanooga. Reilly became CEO in 2017, succeeding Jane Kennedy Greene, the founder’s daughter. Greene has continued as chairman.
The move represents Chicago-based Pritzker’s first foray into logistics. It owns 12 companies in the manufactured products and services industries. According to Pritzker’s website, it invests in mid-market businesses with a family-owned orientation.
Kenco fits the profile. It was founded in 1950 by Jim Kennedy Jr. and Sam Smartt. Initially known as Cherokee Warehouses Inc., the company was started with just one 100,000-square-foot warehouse in Chattanooga.
According to Kenco’s website, Kennedy and the DuPont Co. (NYSE: DD) entered into the industry’s first management fee contract warehousing agreement in 1969. DuPont remains a Kenco customer.
Today, Kenco manages more than 100 distribution facilities comprising 36 million square feet of space. It operates in multiple verticals and generates more than $1 billion in annual revenue.
