Canadian private equity firm Novacap has sold its interest in Metro Supply Chain Group (Metro SCG), a third-party provider of logistics services in North America and Europe. No financial terms were released. Novacap sold the stake to LDC Logistics Holdings Inc, a diversified holding company and existing investor in Metro SCG. Novacap invested in Montréal-based Metro SCG in late 2005. Managing Partner Jacques Foisy said Novacap supported the company’s growth with strategic, operational and financial contributions. He said his firm will explore co-investment opportunities with LDC in the future. Last year, Novacap closed its fourth industries fund at $470 million.
LDC Logistics consolidates ownership in Metro Supply Chain Group
LDC Logistics committed to driving continued global growth at MSCG
MONTREAL, Feb. 2, 2017 /CNW/ – LDC Logistics Holdings (LDC Logistics), a diversified holding company, and Metro Supply Chain Group (Metro SCG), a leading Third Party Logistics Services provider (3PL) in North America and Europe, announced today that 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 today, 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. We will continue to deliver exceptional services and support to our customers and associates as we take the company forward.”
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.
About Metro Supply Chain Group
The Metro Supply Chain Group of Companies is a Canadian-owned leading provider of third-party logistics (3PL) services across North America and Europe with more than 5,000 associates in the team. It supplies customized services to all industry sectors with a significant presence in the consumer packaged goods, retail and automotive sectors. The Group manages over 12m sq. ft of strategically located warehousing and copack centres and has transportation solutions that include managed transport services, dedicated fleet management and global time critical logistics response. For more information, visit metroscg.com.
About LDC Logistics Holdings
LDC Logistics is a diversified holding company, part of a group founded in 1974. It has investments in both logistics companies and businesses related to the industry. In addition, LDC Logistics, through various affiliates including LDC Logistics Development Corporation, owns, manages and develops residential, commercial, hospitality and industrial real estate. For more information, visit www.ldclogistics.com.
Founded in 1981, Novacap is a leading Canadian private equity firm with over $1.6 billion of assets under management. The Firm’s unique investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous investee companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class companies. For more information, visit www.novacap.ca.
For further information: Nina Godard, Edelman Public Relations, Nina.Godard@edelman.com, Tel: 416 850 0611
Photo courtesy of Metro Supply Chain Group