Logistics provider Menlo Worldwide is buying out Singapore-based Cougar Holdings Pte Ltd., and its primary subsidiary, Cougar Express Logistics, for $33.9 million – including a $28.2 million cash payment to Cougar and the assumption of $5.7 million in debt – so it can expand its freight operations into Southeast Asia.
“The synergies between the domestic distribution business and the contract logistics business across a greater geographical sphere offer significant opportunities for development,” said Heinz-Peter Faust, CEO of Cougar Express. “This will accelerate growth and offer our customers an expanded regional service portfolio in Asia as well as access to Menlo’s extensive global capabilities.”
“Expanding our footprint in this important region is critical, and we’re doing it with a successful logistics company that’s complementary in every respect,” added Robert Bianco, Jr., president of San Mateo, CA-based Menlo
Faust and Bianco both pointed to several strategic benefits for both organizations that are expected to result from the business combination.
First, they focus on the same key industries – automotive, consumer, industrial and high-tech – and also share several common customers. Second, Menlo broadens its service portfolio with the addition of Cougar’s ocean freight consolidation/deconsolidation, freight forwarding, cross-border customs brokerage and inland trucking capabilities in Singapore. Third, Menlo gets to expand its automotive capabilities as it acquires Cougar’s extensive operations for finished vehicle logistics.
Finally, through the extensive U.S.-based fleet and infrastructure of Menlo’s sister companies – specifically the LTL and TL services offered by Con-way – Cougar gains direct access to high-performance transportation networks for “last mile” delivery of customer goods to destinations throughout North America.