APL deal gives Kintetsu global clout
20 / 03 / 2015
Japanese-owned forwarder Kintetsu World Express (KWE) said its planned acquisition of APL Logistics (APLL) from Singapore-based NOL Group would allow it to combine its air and sea freight expertise with APLL’s logistics and value-added services.
It would also give it a management base that can compete on a par with European and US competitors in the global market.
APLL was described by an NOL spokeswoman as: “A global supply chain specialist in the auto, consumer, industrial and retail verticals.
"It is continually strengthening its comprehensive toolbox of services by developing new competencies such as air freight; and enhancing its existing offerings including IndiaLinx, OceanGuaranteed, trade compliance and supply chain solutions.”
KWE announced on 17 February that it had entered into a sale and purchase agreement for NOL’s logistics business, APL Logistics, for US$1.2 billion, subject to shareholder and regulatory approval. Group president and chief executive Satoshi Ishizaki said the move was in line with the company’s strategy to strengthen its international presence especially in the US and Asia.
He added: “We intend to retain the headquarters of APL Logistics in Singapore and to run it as a separate unit.” He promised that KWE would “continue to invest in and expand APL Logistics’ services” and to “create exciting career growth opportunities for all employees of the KWE family.”
NOL group president and chief executive, Ng Yat Chung, described the sale as “a strategic move that will allow us to focus on improving our liner shipping business, while at the same time enabling APL Logistics to grow. The transaction will also strengthen our balance sheet and unlock value for our shareholders."