ID Logistics says acquisition of Kane Logistics is complete
Following a late February announcement in which it stated it 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, Ogron, France-based ID Logistics, a provider of international contract logistics services, recently announced that the deal is now completed.
ID Logistics officials said that Kane will be added to its existing United States portfolio under the moniker ID Logistics US, with $350 million in revenue (pro-forma, 2021), and is comprised of 3,000 associates in 26 high-volume, high-turn distribution and packaging centers. Kane’s management team will manage all of ID Logistics U.S. activities, they added.
While a purchase price was not disclosed in last week’s announcement, ID Logistics said in February it was $240 million.
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 February 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.
Kane Logistics Chief Commercial Officer Stan Schrader will transition to CEO of ID Logistics US.
“The combination of ID Logistics and Kane Logistics provides a unique opportunity to drive value for our customers,” said Schrader in a statement. “Both companies focus on delivering similar solutions for companies in the same industry sectors, so our customers will undoubtedly benefit from that complementary know-how.”
And Eric Hémar, Chairman and CEO of ID Logistics, said insd the same statement that the acquisition of Kane Logistics represents a new strategic step in the history of its group.
“It opens up considerable development opportunities for us, particularly with consumer goods customers,” he said. “We also benefit from a great influx of talent from Kane in the form of dynamic managers who share our same values.”
