Just days into a new year, Canada Cartage is announcing its second acquisition for 2021 – purchasing Toronto-based Stalco.
The third-party logistics company specializes in e-commerce fulfillment and distribution, with a focus on natural health products, nutraceuticals, and health and beauty products.
While Canada Cartage will maintain the Stalco brand, it will operate under the fleet’s CCLS fulfillment and distribution division. All staff and members of the management team are staying with the company.
“They’re a complementary business because we both do fulfillment and distribution that’s heavily focused on the natural health segment,” says Canada Cartage chief administrative officer David Zavitz. “We can offer them the Canadian footprint they need.”
In addition to managing the warehousing, fulfillment and kitting, Canada Cartage can also coordinate and negotiate the related Final Mile deliveries.
“It’s a really fast-growing e-commerce segment — especially during Covid,” Zavitz says, noting that consumers are ordering more goods such as specialty oils and specialty soaps online.
News of the deal comes just days after the fleet acquired Ottawa-headquartered City Transfer.
Stalco founder Steven Page says the deal will help “catapult” the operation’s growth.
The third-party-logistics business was founded in 1994, and offers services including inventory management, importing, warehousing, returns management, and cross-border shipping. It builds between 15,000 and 20,000 kits per week.
It also has a Health Canada site licence and can access a white label inventory of 25 health and beauty products. And the company’s shipping platforms also helps eliminate duty costs when shipping overseas products to the U.S.
“Both e-commerce and natural health products markets are enjoying tremendous growth,” said CCLS senior vice-president Scott Lane. “The combination of our two companies helps us scale up our capabilities to offer customers better service and value.”
Canada Cartage has more than 3,500 employees.
