In a move that signals shifting dynamics in North American logistics, U.S.-based third-party logistics (3PL) provider Kenco has acquired Canadian 3PL firm Drexel Industries' logistics operations. The strategic acquisition strengthens Kenco's position in the Canadian market while offering new solutions for businesses facing supply chain challenges.
Strategic Expansion: Why Drexel?
Chattanooga-based Kenco announced earlier this month its successful acquisition of London, Ontario-based Drexel Industries' 3PL business. While financial terms remain undisclosed, the transaction's geographic significance is clear.
The deal centers on Drexel's four strategically located facilities in London, Ontario - positioned equidistant from major hubs including Toronto, Detroit, and Buffalo. These multi-client distribution centers operate in a campus-like environment that optimizes resource sharing and operational flexibility. The acquisition also brings 100 Drexel employees into Kenco's workforce.
"As Kenco continues to grow, we're constantly seeking opportunities to better serve our existing Canadian customers," said Denis Reilly, Kenco's President and CEO. "With Drexel Industries joining the Kenco family, clients of both brands will gain access to an expanded warehouse and logistics service network."
Drexel's Market Position
Founded in 2012, Drexel has specialized in serving B2B and B2C brands with global distribution needs. Their service portfolio includes warehousing, order fulfillment, Amazon FBA prep, brokerage services, and reverse logistics - establishing them as a significant player in Canada's logistics sector.
Behind the Acquisition: Kenco's Strategic Vision
In an exclusive interview, Kenco representatives revealed key insights about the transaction:
Q: What drove Kenco's decision to acquire Drexel's 3PL business? How long has this been in development?
Kenco: While Kenco already had a Canadian presence, acquiring Drexel's four London, Ontario warehouses presented an ideal opportunity for expansion. This adds 820,000 square feet of warehouse space and specialized expertise to our network. Acquisitions remain central to Kenco's growth strategy.
Q: What primary benefits does this offer Kenco's clients? What capabilities does Drexel bring that Kenco lacked?
Kenco: This merger combines Kenco's advanced automation and technology with Drexel's deep Canadian market knowledge, enhancing 3PL solutions for both companies' clients. The integration expands Kenco's footprint through four strategically located Ontario warehouses and 100 employees, enabling broader logistics services and greater delivery efficiency across North America.
Competitive Advantages
The acquisition creates mutual benefits by pairing Kenco's technological resources with Drexel's regional expertise. This combination elevates Kenco's Canadian market presence while providing Drexel clients access to leading 3PL solutions.
Industry Implications
Kenco's move reflects broader logistics industry trends toward consolidation, automation, and localized service offerings. As e-commerce growth and supply chain complexity increase, 3PL providers are expanding capabilities through strategic acquisitions that combine technological innovation with regional market knowledge.
The transaction demonstrates how logistics firms are adapting to meet evolving demands for efficiency, customization, and comprehensive service portfolios across North America's interconnected markets.