CJ Logistics buys US-based DSC Logistics for W231b
[THE INVESTOR] CJ Logistics said on June 8 it is seeking a bigger presence in the US as it has recently decided to buy Illinois-based logistics company DSC Logistics for 231.4 billion won (US$216 million).
The logistics unit of Korean food and entertainment giant CJ Group said it is purchasing a 90 percent stake in the US firm. It is its first purchase in the Americas where the firm operates 15 logistics centers in the US, Canada, Mexico and Brazil.
Founded in 1960, DSC Logistics 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 last year.
“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.
The latest deal comes after CJ Logistics has acquired several regional players in Asia for years as part of global expansion.
The firm purchased CJ Rokin, formerly Rokin Logistics in China, for 455 billion won in 2015, Malaysia’s Century Logistics for 47.1 billion won and a logistics center in Indonesia for 28.5 billion won, both in 2016. Last year, the firm purchased India’s largest transport firm Darcl Logistics for 57 billion won, Dubai-based Ibrakom for 76.9 billion won and Vietnam’s biggest logistics company Gemadept for 143.4 billion won.
Largely buoyed by successful acquisitions over the past years, the firm posted 7.11 trillion won in sales and 235.6 billion won in operating profit last year, up 16.9 percent and 3.1 percent from a year ago, respectively.
By Lee Ji-yoon (firstname.lastname@example.org)