CJ Logistics, an arm of Seoul-based food and entertainment conglomerate CJ Group, is acquiring Illinois-based DSC Logistics to expand its presence in the US.
The Investors reported that CJ Logistics will pay 231.4 billion won ($216 million) to purchase 90 per cent stake in the US firm.
For CJ Logistics, formerly CJ Korea Express, the deal marks its first acquisition in the Americas where it operates 15 logistics centers in the US, Canada, Mexico and Brazil.
“Following our inroads into China and Southeast Asia, we are now beginning a full-fledged expansion into the US,” CJ Logistics CEO Park Keun-tae said in a statement.
“CJ Logistics is the right fit, at the right time,” said Ann Drake, CEO of DSC Logistics. The transaction is expected to close in the third quarter of 2018. Through the agreement, Ann Drake will remain as chair of the DSC Advisory Board and retain minority ownership. The company’s senior leadership will remain in place, a company statement said.
CJ Logistics last year also acquired 50.9 per cent stake in two shipping and logistics subsidiaries under Vietnamese logistics firm Gemadept Corp with both deals pegged at $85 million (97.8 billion won). Gemadebt is said to be the largest Vietnamese logistics firms that was founded in 1990 as a state-owned company, and was one of the early privatized companies.
Founded in 1960, DSC Logistics, Inc. was formerly known as Dry Storage Corporation and changed its name to DSC Logistics, Inc. in January 1994. It specializes in delivering consumer packaged goods and food products with over 50 logistics centers throughout the country. Its sales came to 578.4 billion won ($538 million) last year.