MMD

LDC Logistics completes acquisition of Metro SCG

Financial terms of the transaction were not disclosed


February 7, 2017
by

MONTREAL, Quebec—LDC Logistics has acquired the remaining shares of Metro SCG it did not already own, from NOVACAP, one of Canada’s leading private equity firms. With the close of the transaction, LDC Logistics becomes the sole shareholder of Metro SCG. Financial terms of the transaction were not disclosed.

“I am excited to have the opportunity to take complete ownership of Metro SCG and continue to support the company’s current aggressive growth strategy,” said Chiko Nanji, Chairman of LDC Logistics and Group CEO, Metro SCG.

“The transaction reflects our confidence in our plans to increase Metro SCG’s market position in North America and Europe and welcome new recruits to our exceptional team of more than 5,000 associates. As we enter this new chapter in Metro SCG’s history, we would like to thank NOVACAP for being a true partner over the past 12 years; we are particularly grateful for their support and contributions in the growth and development of Metro SCG.”

“We are very pleased to see the company being returned to its founder and longtime partner,” said Martin Graham, group president, Metro SCG.

“LDC Logistics brings a deep understanding of Metro SCG, the logistics and transportation industries we serve and the strategic path we are on in North America and Europe. In all respects, it is business as usual.”

Over the last 12 years, Metro SCG has expanded its services from its Canadian traditional warehousing roots to provide engineered customized solutions incorporating warehousing, ecom fulfillment, transportation management and post production packaging, in Canada, the United States, the United Kingdom and Germany.

With origins in consumer goods, Metro SCG now has significant presence in retail logistics operations and in March 2016, the company expanded its growing automotive logistics and transportation solutions capability with the acquisition of Europe-based automotive and industrial services emergency logistics specialist, Evolution Time Critical. The company’s managed transportation solutions and expedited freight expertise complements MSCG’s specialism in providing customized logistics solutions, helping to provide a truly cross-industry, multimodal global service.

“It has been a privilege partnering with the exceptional management teams at LDC Logistics and Metro SCG over the past 12 years,” said Jacques Foisy, president and managing partner, NOVACAP Industries.

“We are proud of the strategic, operational and financial contributions that NOVACAP has made to help grow Metro SCG into the leading third party logistics provider it is today. We are particularly proud to transfer the ownership to Chiko, our partner and friend over the last 12 years and look forward to possible co-investment opportunities with him and his team in the future.”

National Bank served as the lead banker, and Stikeman Elliott LLP, KPMG LLP and MNP LLP served as lead advisors for the transaction.