Investment group acquires share of Kenco Logistics in growth bid

The family investment firm Pritzker Private Capital has acquired a share of Kenco Logistics, one of the nation’s top ten third party logistics providers (3PLs) by size, in a move that will provide the Chattanooga, Tennessee-based company with enough fresh capital to boost its growth plans, leaders of both groups said.

Pritzker said it had agreed to do the investment alongside members of the current Kenco management team. Terms of the deal were not disclosed, but the firms said that Kenco CEO Denis Reilly will continue to lead the company from its existing headquarters once the transaction is completed as forecast in the fourth quarter of 2022. 

The infusion of cash is intended to provide Kenco with additional resources to accelerate its growth, scale its innovative offering, and strengthen its leadership as a 3PL provider, both groups said.

“For more than 70 years, Kenco has thrived as a family-owned organization,” Reilly said in a release. “As the demand for innovative and reliable logistics solutions becomes greater than ever, we have found the ideal partner in Pritzker Private Capital to support our growth and advance our mission to be the preferred supply chain partner in North America. From expanding our geographical coverage to investing in important verticals, products and services, Kenco will now be able to capture new opportunities for the benefit of our teams, customers and business partners.” 

Founded in Chattanooga in 1950, Kenco serves more than 200 clients with integrated 3PL supply chain solutions including outsourced distribution and warehouse management, e-commerce fulfillment, transportation management, material handling, and automation services. Kenco today manages more than 100 distribution facilities comprising 36 million square feet of space, backed by a team of more than 5,000 employees. The company serves as a critical supply chain partner for customers in the consumer packaged goods (CPG), food and beverage, healthcare, durable goods, retail, industrial, and information technology end markets, and generates more than $1 billion in annual revenue.

The move marks Pritzker Private Capital’s latest investment in the logistics sector, following its ownership stake in the wood-pallet-pooling company Peco Pallet. Pritzker then sold Peco in 2020 to the investment groups Alinda Capital Partners and USS.
 

 Editor's note: This article was revised on October 7 and 12 to provide clarity on Pritzker's previous investments in the sector.