APL Logistics (APLL) said Monday it has signed an agreement to buy out the interests of two other companies - Legend Holdings Co., Ltd. and Beijing Willway Information Technology Co., Ltd. - in the Chinese joint venture the three owned together called the APLL-Zhiqin Group.
APL Logistics said it expects the transaction to close by end of the year.
Singapore-based APL Logistics said the deal will accelerate its plans to expand its logistics hub management and domestic distribution capabilities "in support of China’s fast growing domestic economy."
APLL-Zhiqin offers services in logistics hub management, domestic land transportation, supply chain technology services, customs brokerage, import and export management, and supply chain consulting. The joint venture currently has nearly 1,000 employees. It manages hub facilities in more than 20 locations and a broad transportation and distribution network covering more than 2,000 locations in China, including third and fourth tier cities.
“We’re witnessing continued growth in China’s domestic market, where both APL Logistics and APLL-Zhiqin have enjoyed a fruitful partnership over the past decade,” said Danny Goh, APL Logistics’ vice president of North Asia. “The acquisition enables APL Logistics to further deepen and broaden its investment in the business and to continue to build on APLL-Zhiqin’s scale, reach, capabilities and strengths.”
With presence in China since 1989, APL Logistics is among the largest providers of international freight management and pre-distribution logistics services out of the country today.
After the acquisition, APL Logistics will combine with APLL-Zhiqin to offer a service network of 78 offices and facilities across China. - Chris Dupin