MARKHAM, ON, Feb. 15, 2018 /CNW Telbec/ - Novexco, Canada's largest Canadian-owned office supply distributor, continues its investment in the Ontario economy, injecting $4 million towards the acquisition of Markham-based Chestwood Stationery Ltd, its modernisation and the implementation of a new ERP system. The investment will also lead to the creation of jobs in the Markham area.
With more than 20 years' experience in office supplies and services, Novexco continues to pursue its growth strategy and expand its network in the greater Toronto area. In recent years, Novexco has expanded its customer portfolio in Ontario with the City of Toronto, the City of Ottawa, the Government of Ontario and many private businesses coming on board.
While many competitors are facing dips in revenue, the proportion of Novexco's business in Ontario has increased by 10% over the last year.
The new investment announced today will make it possible to roll out a new automation and internal management tool as well as boost working capital. Additionally, it will allow the company to implement a paperless ordering system and increase warehouse capacity and infrastructure, making it possible to transfer the orders generated by recent, and future, GTA contracts to the 40,000-square-foot Markham warehouse.
"This transaction is part of our growth strategy and allows us to further strengthen our network, accelerate our growth and create jobs in the Greater Toronto Area," says Denis Mathieu, President and Chief Executive Officer of Novexco. "Chestwood's experienced team, its private Double Diamond furniture brand and its extensive customer base are key assets that will allow us to invest and deliver state-of-the-art infrastructure to our Markham colleagues."
Mastering change to evolve
Like the entire retail sector, the office supply and equipment industry is experiencing major changes, including to its traditional supply chain. The arrival of new digital players has reduced the number of intermediaries between suppliers and customers.
Novexco is already adapting to this challenge with several differentiating factors helping boost its growth. These include customized, value-added services, a national distribution network, an expanded catalog and international partnerships. Novexco also counts on the successful integration of the banners it has acquired as well as its processes to optimize productivity.
Novexco is a Canadian-owned office, technology and furniture supply company, founded in 1996. With more than 100 stores in Eastern Canada, the company serves businesses and independent resellers across Canada from its distribution centres in Calgary, AB, Markham, ON, Laval, QC, Montreal, QC, and Dartmouth, NS. The company's head office is located in Laval, QC.
SOURCE Novexco Inc.
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