Kenco strengthens North American logistics reach through strategic purchase of Canadian 3PL Drexel Industries

Earlier this month, Chattanooga, Tenn.-based 3PL Kenco said it has acquired the 3PL business of London, Ontario-based Drexel Industries, a provider of logistics and distribution services, primarily serving B2B and B2C businesses. A purchase price was not disclosed.

Along with acquiring Drexel’s 3PL business, Kenco said this acquisition also includes Drexel’s four London, Ontario-area physical locations—which are equidistant from Toronto, Detroit, and Buffalo and operate as multi-client distribution spaces in a campus-like environment, and enable Drexel’s resource sharing and more flexible operations, coupled with 100 Drexel associates becoming Kenco employees. And Kenco added that it will leverage Drexel’s co-packing and co-filler expertise as part of its service portfolio.

“As Kenco continues to grow, we’ve looked for opportunities to better serve our existing customers across Canada,” said Denis Reilly, President and CEO at Kenco. “With Drexel Industries joining the Kenco family, customers of both brands will gain access to a broader network of warehouses and logistics services.” 

Established in 2012, Drexel Industries has focused on serving B2B and B2C brands in globally distributing their goods, and its service menu includes: warehousing, fulfillment, Amazon FBA prep, brokerage services, and reverse logistics.

A Kenco spokesperson provided an overview of the deal in a Q&A below.

LM: What drove the need for Kenco to acquire Drexel's 3PL business? How long had it been planned?

Kenco: Although Kenco already had a presence in Canada, the acquisition of Drexel Industries’ four warehouses located in London, Ontario, make it a great fit for our business to further expand its Canadian operations—adding 820k sq ft. and further expertise to our network. Acquisitions remains a key growth strategy for Kenco. 

LM: What are the main benefits of this deal for Kenco's customers? What does Drexel bring, in terms of service offerings, that was needed, or missing?

Kenco: Kenco’s acquisition of Drexel Industries combines Kenco’s advanced automation and technology with Drexel’s deep Canadian market expertise, enhancing 3PL solutions for both firms’ customers. This integration expands Kenco’s footprint with four strategically located warehouses and 100 employees in Ontario, providing broader logistics services and improved distribution efficiency across North America.

LM: How many employees and facilities does Drexel have? Will all the current Drexel employees become part of Kenco?

Kenco: Drexel Industries has 100 associates across four warehouses, all located in London, Ontario, operating as multi-client distribution spaces in a campus-like environment. All associates and warehouses will transition to Kenco.

LM: What are the main competitive advantages of this deal, for Kenco?

Kenco: Kenco’s acquisition of Drexel Industries provides mutually beneficial advantages for each organization. By integrating Kenco’s automation and technology resources with Drexel Industries’ Canadian market knowledge, this acquisition will increase Kenco’s awareness in Canada while also providing existing Drexel Industries customers with leading 3PL solutions.