CJ Logistics Corp. completed the acquisition of a U.S. company last week as part of its plans to expand its presence in the North American logistics market. Accordingly, the company’s move aiming to become one of the world’s top five logistics companies is expected to gain momentum.
CJ Logistics announced on Aug. 27 that it completed the acquisition of a 90% stake in DSC Logistics at the headquarters in Des Plaines, Illinois, on August 24 and it is planning to make DSC Logistics a vital part of its global platform strategy.
CJ Logistics CEO Park Geun-tae said, “When DSC Logistics’ expertise in the U.S. is combined with CJ Logistics’ leadership based on high-tech solutions and global networks in 33 countries, CJ Logistics will become a leading SCM firm not only in the U.S. but also in the world. The company will be able to jump up to be one of the world’s five biggest logistics companies eventually.”
As a company specializing in delivering food products and consumer packaged goods, DSC Logistics posted 578.4 billion won (US$519.21 million) in sales last year. It operates more than 50 logistics centers throughout the U.S. and its storage areas amount to 230 square meters, which is about the size of 300 international-standard soccer fields. CJ Logistics signed a stock purchase agreement (SPA) to acquire a 90 percent stake in DSC Logistics on June 7 at CJ HumanVille in Seoul for 231.4 billion won (US$207.72 million).
CJ Logistics expects to be able to provide a wider variety of services, such as international aviation and shipping forwarding service, cross-border transportation and combined transportation to neighboring countries and omni-channel fulfillment services in the logistics industry, to DSC Logistics’ existing customers by making use of its own global networks in the North and South America regions.
CJ Logistics operates a total of 30 logistics hubs and 15 logistics centers in four countries in North and South America, including Canada, Mexico and Brazil and the U.S., and provides logistics services to all industries ranging from automobile, tire and food to consumer goods.
Meanwhile, CJ Logistics has been accelerating its overseas expansion since it declared to become one of five global leading logistics firms in 2013, carrying out active mergers and acquisitions. The company bought Shanghai-based logistics firm Smart Cargo in 2013 as well as a 71.4 percent stake in CJ Rokin Logistics for 455 billion won (US$408.44 million) in 2015. It also acquired India’s Darcl Logistics and Vietnam’s Gemadept. It is now seeking a financial investor to form a consortium for acquiring German-based logistics firm Schnellecke Group.