NIPPON Express, said to be the seventh-largest third-party logistics provider in the world by revenue, has agreed to acquire Austrian logistics company Cargo-Partner for up to US$1.5 billion, reports New York's FreightWaves.
The deal significantly strengthens nippon Express Group's network in Europe, especially the growing manufacturing regions in central and eastern countries, and increases its ocean and air forwarding volumes.
Greater access to Europe and other regions provides a counterbalance to projections for Japan's domestic logistics market to remain stagnant due to a shrinking population and government policies.
Publicly-listed Nippon Express said it will pay EUR845 million (US$924 million) in cash for Cargo-Partner and its subsidiaries, followed by cash payments of up to $607 million based on the target companies reaching certain financial thresholds. The deal is expected to close between November and May, subject to various regulatory approvals.
Nippon Express' gross revenue was more than $21 billion last year, with 29 per cent of business coming from overseas sales compared to 20 per cent in 2019. The company, which has more than 73,400 employees at 760 locations, forecasts revenue will decline to $18 billion this year amid a global economic slowdown and weak shipping demand, with international sales increasing to 30 per cent.
SeaNews Turkey
The deal significantly strengthens nippon Express Group's network in Europe, especially the growing manufacturing regions in central and eastern countries, and increases its ocean and air forwarding volumes.
Greater access to Europe and other regions provides a counterbalance to projections for Japan's domestic logistics market to remain stagnant due to a shrinking population and government policies.
Publicly-listed Nippon Express said it will pay EUR845 million (US$924 million) in cash for Cargo-Partner and its subsidiaries, followed by cash payments of up to $607 million based on the target companies reaching certain financial thresholds. The deal is expected to close between November and May, subject to various regulatory approvals.
Nippon Express' gross revenue was more than $21 billion last year, with 29 per cent of business coming from overseas sales compared to 20 per cent in 2019. The company, which has more than 73,400 employees at 760 locations, forecasts revenue will decline to $18 billion this year amid a global economic slowdown and weak shipping demand, with international sales increasing to 30 per cent.
SeaNews Turkey
