CJ Logistics Plans To Acquire German Logistics Company To Expand Presence In Europe
CJ Logistics has acknowledged that it is reviewing available opportunities to be a global company. It also wants to strengthen its business competitiveness by partnering or collaborating with a global logistics firm. Last July 31, CJ Logistics announced that it is considering a possible acquisition of German logistics firm Schnellecke Group in order to expand its presence in the European logistics market.
Schnellecke Group that was established in 1929 is one of the major logistics firms in Europe. In 2017, company sales reached about 1.1 trillion won or US$985.57 million. Net profit was posted at 200 billion won. According to industry sources the current value of the German company is about 1 trillion won.
Meanwhile, CJ Logistics was established in 1930. The company posted sales worth 7.11 trillion won and an operating profit of 235.6 billion won last year. Last June, CJ Logistics acquired DSC Logistics, an American logistics company based in Illinois, Chicago to expand its business in the US market. DSC Logistics specializes in providing supply chain management services in highly regulated industries.
According to sources in the industry, the logistics unit of the Korean food and entertainment giant CJ Group has chosen law firm Shin & Kim as their legal adviser for the deal. The law firm is currently preparing a letter of intent.
The deal with the German logistics company is very crucial for the CJ Group to be able to reach its goal that was set by CEO Park Geun-tae two years ago. CJ Logistics must become one of the top 5 logistics firms in the world with sales of 27 trillion won by 2020.
To achieve the goal, CJ Logistics must form partnerships and conduct mergers and acquisitions over the last 5 years. By acquiring Rokin Logistics, the company was able to expand its market in Southeast Asia and China.
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