The logistics leader strengthens its Canadian presence through acquisition of London, Ontario-based 3PL provider, enhancing warehouse networks and value-added services for e-commerce and retail clients.
In a strategic move to bolster its North American logistics capabilities, Kenco, a leading third-party logistics (3PL) provider headquartered in Chattanooga, Tennessee, has acquired Drexel Industries, a London, Ontario-based supply chain specialist. The acquisition marks Kenco's continued expansion in the competitive logistics market while significantly enhancing its service offerings for business-to-business (B2B) and business-to-consumer (B2C) clients.
Strategic Expansion Through Acquisition
Founded in 2012, Drexel Industries has established itself as a key player in distribution services, offering comprehensive solutions including warehousing, order fulfillment, Amazon FBA preparation, freight forwarding, and reverse logistics. The acquisition enables Kenco to immediately expand its operational footprint with four strategically located facilities in the London area, positioned to serve major markets including Toronto, Detroit, and Buffalo.
"As we continue to grow our business, we sought opportunities to better serve customers throughout Canada," said Denis Reilly, Kenco's CEO. "The addition of Drexel Industries means customers will gain access to a broader warehousing and logistics services network."
Geographic and Operational Advantages
The transaction delivers immediate value through Drexel's prime logistics locations, enabling faster turnaround times and reduced transportation costs for clients. Kenco's expanded network will offer customers streamlined access to cross-border distribution channels between the U.S. and Canada, a critical advantage as e-commerce continues to drive demand for efficient continental supply chains.
Beyond geographic expansion, the acquisition brings specialized capabilities in co-packaging and kitting services—increasingly important differentiators in today's retail environment where customized packaging and flexible fulfillment solutions drive customer satisfaction and brand loyalty.
Integration and Industry Trends
Kenco plans to retain Drexel's 100 employees, combining operational expertise to create synergies across both organizations. The integration reflects broader industry trends where 3PL providers are increasingly pursuing acquisitions to enhance service capabilities and geographic coverage.
The deal positions Kenco to offer more comprehensive, automated logistics solutions that simplify complex supply chain operations for clients. From order intake to final delivery, customers will benefit from unified management of B2B and B2C logistics through a single provider.
This strategic acquisition underscores the evolving logistics landscape, where service providers must continually adapt to meet growing demands for speed, flexibility, and integrated solutions. As Kenco absorbs Drexel's operations and expertise, the combined organization is poised to set new standards for logistics service quality in North America's competitive market.