Supply stores

BJ’s Wholesale Club improves its supply chain with an acquisition

BJ’s Wholesale Club strengthens its supply chain operations by acquiring a long-time partner.

The membership warehouse club retailer has entered into an agreement to acquire the assets and operations of four refrigerated distribution centers and related private transportation fleet from Burris Logistics. The transaction will allow BJ’s to internalize its end-to-end perishable goods supply chain. Terms of the agreement were not disclosed.

“For more than 20 years, we have enjoyed a true partnership with the team at Burris Logistics as we distribute the freshest perishables to clubs across our chain,” said Bob Eddy, President and CEO, BJ’s Wholesale Club. “As we continue to accelerate the growth of our new club, expand our footprint and expand our fresh food offerings, we are excited to internalize these capabilities to support our future growth.”

BJ’s opened three branches so far in January. The company plans to open around 10 new clubs in 2022.

The proposed acquisition includes four perishable food distribution centers (Rocky Hill, Connecticut; Orlando, Fla.; Elkton, Md.; Independence, Ky.), facility personnel, associated real estate and capital assets necessary for operations.

Burris Logistics is a 90-year-old family business that provides temperature-controlled distribution and logistics services to customers across the United States. For decades, Burris Logistics has partnered with BJ’s to support day-to-day supply chain operations for BJ’s perishable business.

“Burris Logistics is proud to partner with BJ’s for its growth and transformation over the past few years,” said Donnie Burris, CEO of Burris Logistics. “This acquisition represents the next chapter in the evolution of Burris Logistics and presents incredible opportunities for BJs and team members at these distribution centers.”

“We look forward to welcoming all of the talented Burris Logistics team members who have supported our business to the BJ Supply Chain team,” said Jeff Desroches, Executive Vice President and Chief Operating Officer. , BJ’s Wholesale Club. “The addition of these four facilities and the private fleet is part of a broader strategy to expand and scale efficient supply chain capabilities, positioning BJ’s for continued growth while delivering the highest quality and the freshest produce to our members.”

This acquisition, which has been unanimously approved by the boards of directors of both companies, is subject to regulatory approval and traditional closing processes and is expected to close in the second quarter of 2022.

Goodwin Proctor served as legal counsel to BJ’s Wholesale Club. Venable served as legal counsel to Burris Logistics and its owners.

Based in Westborough, Mass., BJ’s Wholesale Club is one of the leading membership warehouse club operators in the Eastern United States. The company currently operates 225 clubs and 156 BJ’s Gas locations in 17 states.

Founded in 1925, Burris Logistics operates an expanding network of temperature-controlled warehousing and distribution centers from Maine to Florida and as far west as Oklahoma. This fifth-generation, family-owned company provides logistics, transportation and supply chain solutions, coast to coast, through its brands: Burris Logistics (fulfillment, distribution, e-commerce warehousing, Honor Foods (a redistributor of frozen, chilled and dry foodservice products), and Trinity Logistics (a global provider of freight solutions).