CPE News (1.09.2024) – Canada Post Corporation and Purolator Holdings Ltd. announced finalization of a transaction to sell SCI Group Inc. to Metro Supply Chain Inc.
Financial terms were not disclosed.
Canada Post said it started potential sale process in 2023 with a comprehensive, multi-stage RFP process, involving external legal and financial experts to evaluate options and proposals. It is now in the process of finalizing the transaction with Metro Supply Chain, which is subject to regulatory approval.
In 2001, Canada Post acquired Progistix Solutions from Bell Canada. Progistix expanded with acquisitions of AMG Logistics, Assured Logistics and First Team Transport, to become SCI Group Inc., one of four operating subsidiaries of Canada Post.
Controlled by Chiko Nanji and family, Montreal based Metro Supply Chain Group, operating through Metro Supply Chain Inc., is a Canadian leader in third-party logistics.
Caisse de dépôt et placement du Québec (CDPQ) is a significant minority shareholder in Metro Supply Chain Group, first investing in April 2018 and increasing its investment in 2019.
photo credit: SCI Group
Canada Post to sell SCI Group to Montréal-based Metro Supply Chain
Move supports efforts to transform the postal service while strengthening a Canadian leader in third-party solutions
OTTAWA, ON, Jan. 9, 2024 /CNW/ – Canada Post Corporation (Canada Post) and Purolator Holdings Ltd. are finalizing a transaction to sell SCI Group Inc. (SCI) to Montréal-based Metro Supply Chain Inc. (Metro Supply Chain), a Canadian leader in third-party logistics. The move comes as Canada Post focuses on transforming to serve the changing needs of Canadians and Canadian businesses.
SCI is a leading Canadian third-party logistics (3PL) provider specializing in warehousing fulfillment, supply-chain solutions and transportation management. It operates independently with more than 75 locations totalling over 4 million square feet and employs approximately 3,000 team members.
“SCI has been a strong performer for the Canada Post Group of Companies over the years,” said Doug Ettinger, President and CEO, Canada Post. “We’re pleased this move will help to further strengthen an established Canadian logistics leader, while allowing us to focus our efforts on continuing to lead in the rapidly growing ecommerce market.”
“We are excited about the opportunity to welcome SCI to the Metro Supply Chain Group,” said Chiko Nanji, Founder and Group Chairman of Metro Supply Chain. “Both companies share strategic alignment, with deep roots in Canada and a common commitment to excellence in serving our customers and nurturing our corporate cultures. Together, we will be exceptionally well-placed to compete in the global supply-chain industry.”
Transforming the postal service
Over the last two years, Canada Post has been executing a comprehensive transformation plan, focused on the rapidly evolving postal needs of the country. The plan positions the company for growth in Canada’s ecommerce market while delivering on its core mandate of providing reliable delivery of mail, packages and parcels to every Canadian address. In September 2023, the Corporation opened the Albert Jackson Processing Centre, doubling its parcel capacity in the Greater Toronto Area and improving service across the country.
The potential sale process began in 2023 after a detailed review and assessment of Canada Post’s long-term strategic plan. A comprehensive, multi-stage RFP process followed, involving external legal and financial experts to evaluate options and proposals. Canada Post is now in the process of finalizing the transaction with Metro Supply Chain, which is subject to regulatory approval.
The Canada Post Group of Companies’ operations are funded by revenue generated by the sale of its products and services, not taxpayer dollars.
SOURCE Canada Post
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