Menlo buys Chinese logistics firm
Menlo Worldwide, the logistics subsidiary of Con-way, said it has completed the acquisition of Shanghai-based Chic Holdings for $60 million, plus future earn-out incentives based on performance.
Menlo said the deal would expand its operating footprint and service capabilities in China.
Chic Logistics had revenues of $55.2 million last year and employs 1,500 persons working from 130 operating sites in 78 cities.
Johnson Shen, chief executive officer of Chic, said the deal will allow his company to “achieve faster growth in the domestic China market while expanding to offer our customers proven international coverage via Menlo’s global network.”
Menlo has operated in China for a decade, and earlier this year purchased Cougar Holdings Pte Ltd., a 3PL with operations in Singapore, Malaysia and Thailand.
The company said the Chic and Cougar deals “fulfill a strategic expansion plan for Menlo, which extends its Asia-Pacific network with complementary capabilities while establishing a solid foothold for domestic distribution in China.”