CJ Logistics CEO Park Keun-tae with DSC Logistics CEO Ann Drake during a signing ceremony. [Photo provided by CJ Logistics Corp.]
CJ Logistics U.S.A. Corp., a wholly-owned subsidiary of South Korea’s CJ Logistics Corp., is taking over U.S.-based DSC Logistics Inc. for $216.4 million to expand its business in North America.
The Korean logistics company said in a disclosure on Friday its U.S. unit agreed to purchase 1,800 shares tantamount to a 90 percent stake in the U.S. firm by Nov. 15 with an option to later assume the remaining 10 percent.
It added the acquisition price may slightly differ by the time the deal closes.
DSC Logistics, founded in 1960, began as a single warehouse in Illinois and has grown into one of America’s major logistics companies with a staff of 3,420 employees and sales of 578.4 billion won ($546.7 million) as of 2017. It operates more than 50 logistics centers across the U.S. with a total storage space of 2.1 million square meters, equivalent to nearly 300 soccer fields. As a supply chain management company, it provides warehousing and transportation services to Fortune 500 and other leading companies in food and consumer goods, healthcare and electronics sectors.
CJ Logistics plans to tap into major logistics hubs in the U.S. leveraging on DSC’s strengths in warehouse and distribution. The Korean company operates 15 logistics centers in 30 logistics hubs across the U.S., Canada, Mexico and Brazil.
CJ Logistics also expects to take advantage of its global network to broaden DSC’s service scope to neighboring countries and bolster its cross-border transportation businesses.
Since 2013, CJ Logistics has been pursuing a series of mergers and acquisitions in China, India, and Central and Southeast Asia with an ambition to join the global top five by 2020.
Shares of CJ Logistics closed Friday unchanged from the previous session at 154,000 won.
By Lee Yoo-jin and Kim Hyo-jin
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