Ogron, France-based ID Logistics, a provider of international contract logistics services, recently announced it has inked an agreement to acquire 100% of Scranton, Pa.-based Kane Logistics, a provider of value-added warehousing and contract logistics services, from Kane’s ownership group, Harkness Capital Partners.
The purchase price, according to ID Logistics, was $240 million. The deal remains subject to the approval of the United States antitrust authorities and is expected to be completed in mid-April. Once the transaction is complete, KANE will become part of ID Logistics, US.
Kane Logistics has a long history, going back to its founding in 1930 by the Kane family. In 2019, the company was acquired by Harkness Capital Partners, with a focus on building out Kane’s platform and accelerating growth. And over the last three years, the company has established itself as a leading contact logistics services provider, specifically with blue-chip consumer packaged goods, as well as food and beverage manufacturers and distribution specialists.
What’s more, since Kane initially began focusing on its value-added services, in tandem with its more traditional logistics services, the company has increased its revenue by more than 20% annually, going back to 2019, reaching $235 million in 2021. The company has 20 U.S.-based hubs, with several in Pennsylvania, and others in Pennsylvania, Georgia, Ohio, Illinois, and California, spanning a cumulative 725,000 square-meters.
A Kane blog post noted that ID Logistics provides various services, including warehousing and distribution, temperature-controlled logistics, transportation, and e-commerce. It added that ID Logistics’ geographic reach spans more 7 million square-meters of distribution space (~ 75 million sq ft), with 350 sites across 17 countries with roughly 25,000 employees. ID Logistics’ revenue base is currently $2.2 billion US dollars.
The blog post added that the KANE management team has been asked to stay in place after the transaction closes. Stan Schrader, Kane’s Chief Commercial Officer, will be elevated to CEO of ID Logistics, US, reporting to Christophe Satin, Chief Operating Officer, Director and Investor in ID Logistics.
Eric Hémar, Chairman and CEO of ID Logistics said in a statement that the acquisition of Kane Logistics represents one of the most important external growth operations in the history of the ID Logistics.
“After starting in 2001 with a few large retail customers that we were able to quickly support internationally, the company shifted to e-commerce and retail preparation in 2013 with the acquisition of CEPL,” he said. “It then strengthened its presence in Europe with the recent acquisition of GVT in Benelux. [W]ith the acquisition of Kane Logistics, we are opening up new prospects in North America, where we are enhancing our know-how, in particular with consumer package goods customers, and welcoming experienced and dynamic managers to our team.”
And Tony Tegnelia, Lead Director and CEO of Kane Logistics, said that he strongly believes that the cultural fit between the companies is close to perfect.
“ID Logistics is the ideal next partner to move the Company forward, to serve our customers, and to help maintain our growth trajectory,” said Tegnelia. “Their cultural values are a mirror of our values, and they also have a very strongly committed management team.”
About the Author
Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
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