Menlo Worldwide, LLC, the global logistics subsidiary of Con-way Inc. announced today the signing of an agreement to purchase Chic Holdings Ltd. and its wholly owned subsidiaries Shanghai Chic Logistics Co. Ltd. and Shanghai Chic Supply Chain ManagementCo. Ltd.
Menlo said it is acquiring privately held Chic Holdings Ltd., a corporation registered in the Cayman Islands, and all of its assets and subsidiaries for a cash payment of US$60 million plus an undisclosed future earn-out incentivebased on its performance.
Headquartered in Shanghai, Chic Logistics is a profi table, well-established provider of domestic third-party logistics and transportation managementservices in China.
The company has a full-service portfolio and network with 130 operating sites in 78 cities, providing coverage of China’s highly industrialised eastern sectors as well as the mainland’s interiorprovinces.
One of China’s fastest-growing thirdparty logistics fi rms, Chic Logistics produced revenues of US$55.2 million in 2006, a 40 per cent increase over 2005.“Chic Logistics is highly respectedwithin China as a superior operator withan excellent service reputation amongcustomers,” said Robert L. Bianco Jr.,president, Menlo Worldwide. “This isthe most strategic acquisition in Menlo’shistory. With Chic Logistics’ domesticcapabilities and network, we immediatelybecome a major player in the intra-Chinamarket — the next great growth enginefor transportation and logistics.”
Combined, the two companies will comprise more than 1,500 employees in China operating, with nearly 180,000 square meters of warehouse space under management. Menlo’s China operations will be based at Chic Logistics’ headquarters in Shanghai. Bianco noted that the acquisition fi lls in a key strategic component of Menlo’s service platform not only for mainland China, but also for the broader Asia-Pacifi c region.
The Chic Logistics acquisition, combined with existing Menlo operations in China and other parts of Asia and the earlier acquisition of Singapore-based Cougar Express Logistics with operations in Southeast Asia, positions Menlo with one of the industry’s strongest and most extensive networks for managing Asia-Pacifi c freight and logistics, the group said.
