For $60 million cash, plus an undisclosed future earn-out incentive based on performance, Menlo Worldwide – the global logistics subsidiary of Con-way Inc. – is buying Chic Holdings Ltd. and its wholly owned subsidiaries Shanghai Chic Logistics Co. Ltd. and Shanghai Chic Supply Chain Management Co. Ltd.
Headquartered in Shanghai, Chic Logistics provides domestic third-party logistics and transportation management services in mainland China through a network of 130 terminals in 78 cities, covering China’s industrialized eastern sectors as well its interior provinces. Menlo added that Chic Logistics produced revenues of $55.2 million in 2006, a 40% increase over 2005.
“This is the most strategic acquisition in Menlo’s history,” said Robert Bianco Jr., Menlo president. “With Chic Logistics’ domestic capabilities and network, we immediately become a major player in the intra-China market – the next great growth engine for transportation and logistics.”
Combined, the two companies will employ more than 1,500 who will operate from 139 sites in 79 cities. Bianco added that Menlo’s China operations will be based at Chic Logistics’ headquarters in Shanghai.
“We believe there are many untapped or underserved areas where our combined resources can truly bring new, high-value logistics, trucking and supply chain solutions to China's importers, exporters and domestic shippers,” said Bianco.
