Metro Supply Chain has agreed to be acquired by Nippon Express Holdings in a transaction valued at up to $2.2 billion.

The deal, struck by majority shareholder LDC Metro Holdings alongside La Caisse, is subject to customary regulatory approvals and is expected to close in the coming months. Until then, the company will continue operating without disruption.

Founded more than 50 years ago in Montreal, Metro Supply Chain has grown into a major supply-chain solutions provider with operations across Canada, the U.S. and the U.K. The company’s logistics real estate footprint spans 2.2 million square feet across 190 sites in North America and the U.K. The company will now join Nippon Express, a global logistics group with operations in more than 50 countries, as it looks to expand further.

Nippon Express has committed to maintaining Metro Supply Chain’s management team and Montréal headquarters, with day-to-day decision-making remaining local. The company also said it will not materially downsize the Quebec head-office workforce or relocate a significant portion of management.

“Our philosophy has always been to build strong businesses alongside exceptional management teams and long-term partners,” said Chiko Nanji, founder and group chairman of Metro Supply Chain and chairman of LDC. “Metro exemplifies that approach—earning the trust of its people, customers, and partners through a focus on relationships, operational excellence, and culture. This transaction recognizes the strength of what has been built and positions the company for its next phase of growth with a global partner that shares our values.

“With greater resources, and a global network, Metro is well-positioned to deepen its presence in Canada, the U.S. and the U.K. and expand into new markets. I’m pleased to remain on the board to support continuity and long-term success, and grateful to our partners at La Caisse and Investissement Québec, as well as our banking partners led by National Bank, for their support through a period of significant value creation.”

Chris Fenton, Metro Supply Chain’s group president and CEO, said the proposed transaction will give the company access to additional scale and investment while allowing it to continue operating the business as it does today.

“La Caisse has supported Metro Supply Chain’s growth and evolution since its initial investment in 2018, a partnership marked by successive reinvestments and strong returns for its depositors,” said Kim Thomassin, executive vice–president and head of Quebec at La Caisse. “The commitment to maintain the head office of this Canadian logistics leader in Quebec, along with its management team and local workforce, was a key factor for us. This new partnership will enable Metro Supply Chain to build on its success and enter the next phase of its growth.”

Satoshi Otsuji, senior executive officer at Nippon Express, called the proposed acquisition a “good fit” for the company, adding that the Canadian firm’s capabilities, customer relationships and North American market position complement the Japanese giant’s global network and long-term growth strategy.

J.P. Morgan acted as exclusive financial advisor to Metro Supply Chain, with legal advisors including Osler, Stikeman Elliott and Borden Ladner Gervais.

Nippon Express has a Canadian subsidiary based in Mississauga, Ont.

Photo: Metro Supply Chain