Kintetsu Worldwide Express finalizes APL Logistics deal

The $1.2 billion acquisition will significantly diversify the Japanese forwarder’s service portfolio.    Tokyo-based Kintetsu Worldwide Express has completed its $1.2 billion acquisition of APL Logistics, Singapore-based Neptune Orient Lines, APL’s parent, announced Friday. 
   APL Logistics is known for its contract logistics and intermodal services, especially for the retail and automotive industries in North America. APL, officially incorporated in 2000, now has annual revenue of about $1.6 billion. The deal significantly expands Kintetsu’s capabilities, which are currently focused on freight management, and its geographic reach.
   When the sale was announced in mid-February, NOL said it would help pay down debt and allow the company to focus on its struggling APL ocean liner business.
   APL Logistics is also active in China and India. The company maintains more than 20 million square feet of warehousing space and has 5,600 employees at its 110 offices worldwide.
   Analysts say Kinetsu is seeking out new markets through the APL Logistics buy because the Japanese logistics market is stagnant, due to manufacturing outsourcing to other parts of Asia and a shrinking population.
   Japan Post in February also spread its wings with the planned purchase of Australian global logistics provider Toll Group.