ID Logistics Is Giving Itself the Means for Strong Development in the United States by Completing the Acquisition of Kane Logistics

• Completion of the acquisition of 100% of Kane Logistics in the United States
• Strengthened presence in the United States: revenue of $350 million in 2021 pro forma post-acquisition, 26 locations and 3,000 employees
• Appointment of Stan Schrader as new CEO of ID Logistics US
• Experienced management and potential for significant commercial synergies

ORGON, France--(BUSINESS WIRE)--Regulatory News:

ID Logistics (ISIN: FR0010929125, Ticker: IDL), one of the European leaders in contract logistics, is announcing today the completion of the acquisition of 100% of Kane Logistics in the United States.

Acquisition of Kane Logistics

Kane Logistics is a pure player in contract logistics and value-added warehousing services founded in the United States in 1930 by the Kane family. Since 2019, Kane Logistics has accelerated its transformation to become a major player in American contract logistics, particularly with prestigious manufacturers in consumer goods, food and beverages, and retail specialists.

This transformation was led by management with solid operational experience acquired within large contract logistics companies such as Ryder or Jacobson Companies (logistics company based in the United States and acquired in 2014 by Norbert Dentressangle).

Kane Logistics has experienced revenue growth of +20% per year since 2019 to reach $235 million in 2021 and now operates 20 hubs across the country (particularly in Pennsylvania, Georgia, Ohio, Illinois and California) representing 725,000 m².

The acquisition of Kane Logistics is particularly relevant due to the proximity of corporate cultures, the complementarity of customer portfolios and potential commercial synergies with ID Logistics. Indeed, Kane Logistics presents a business model very comparable to that of ID Logistics: asset light approach, dedicated warehouses, solutions adapted to the specific needs of each client. The “key account” customer approach of the two companies also makes it possible to offer shared solutions in the United States and Europe.

By adding the Group's existing activities in the United States, the new entity reaches a turnover of 350 million dollars pro-forma in 2021, has a diversified client portfolio in the consumer goods industry, retail and e-commerce. ID Logistics US now employs nearly 3,000 people and has good national coverage with 26 sites well distributed throughout the United States.

Appointment of Stan Schrader, new CEO of ID Logistics US

ID Logistics now relies on Kane Logistics teams to manage all of its activities in the United States.

Stan Schrader, Chief Commercial Officer of Kane Logistics, has been appointed CEO of ID Logistics US with the objective of maintaining a high level of organic growth and implementing the commercial synergies offered by this merger. Stan is particularly attentive to the quality of service delivered to his customers. He declares :

“I am particularly happy and motivated to lead this new business unit in North America. ID Logistics offers us a unique opportunity to pursue our development in our market and brings a strong complementary know-how to the activities of Kane Logistics. The proximity of culture and strategy between our two companies is simply amazing and represents a real guarantee of future success”

The strong ambitions of ID Logistics in the United States

Two years after its entry into the United States following the takeover of Nespresso's logistics operations, ID Logistics is giving itself the means to achieve its ambitions in a high-potential region: the size of ID Logistics post-acquisition, the management and he organization put in place should make it possible to develop commercial synergies and pursue strong growth in a geographical area which, in the medium term, will represent a significant part of the Group's activities.

Eric Hémar, Chairman and CEO of ID Logistics declares :

“The acquisition of Kane Logistics represents a new strategic step in the history of our Group. It opens up a considerable new field of development for us, particularly with industrial consumer goods customers. We also benefit from a team of experienced and dynamic managers who are committed to our values.»

Acknowledgments

Eric Hémar, Chairman and CEO of ID Logistics, thanks the ID Logistics teams and their counsels :

• Hogan Lovells in France and in the United States for the corporate M&A (Jean-Marc Franceschi, Ashlee Gilson), the financing (Sophie Lok) and the antitrust (Robert Baldwin),
• 8Advisory for the due diligences in finance (Stéphane Vanbergue, Pierre-David Forterre, Patrick Blastland) and tax (Guillaume Rembry, Hubert Christophe, Jérémy Cosma) in cooperation with CFLA (Bruno Egan), Gowling (Barbara Jouffa, Geraldine Gonzalvez) and Nixon Peabody (David Kaufman, Gary Levenstein, Ryan Cosmopulos, Jacalyn Smith) for the legal and social due diligences,
• BNP Paribas for the financing (Rachida Tournier, Edwige Lacroix).

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Q1 2022 Revenues: April 25, 2022, after market close.

À PROPOS D’ID LOGISTICS

ID Logistics managed by Eric Hémar is an international contract logistics group, with revenue of €1,911 million ($2,179 million) in 2021. ID Logistics manages 360 sites across 17 countries, representing nearly 8.0 million square meters of warehousing facilities in Europe, America, Asia and Africa, with 27,500 employees. With a client portfolio balanced between retail, industry, detail picking, healthcare and e-commerce sectors, ID Logistics is characterized by offers involving a high level of technology. Developing a social and environmental approach through a number of original projects since its creation in 2001, the Group is today resolutely committed to an ambitious CSR policy. ID Logistics is listed on Compartment A of Euronext’s regulated market in Paris (ISIN Code: FR0010929125, Ticker: IDL).