South Korean logistics company CJ Logistics Corp. said last night it acquired 90 percent of U.S. logistics firm DSC Logistics Inc. for US$216 million as part of a strategy to expand in the U.S. market. The deal marks the first acquisition in the Americas for the logistics arm of South Korea's food and entertainment conglomerate. CJ operates 15 logistics centers in the U.S., Canada, Mexico, and Brazil. It had made acquisitions in four Asian countries.
"Following our inroads into China and southeast Asia, we are now beginning a full-fledged expansion into the U.S.," CJ Logistics CEO Park Keun-tae said in a statement that appeared on the Yonhap news service.
Under the agreement, Ann M. Drake, who joined DSC in 1994 and is its CEO, will remain as chair of the DSC Advisory Board and will retain minority ownership. The company's other senior leadership will remain in place, with Ed Bowersox as president, David Copeland as CFO, and Kevin Coleman as chief customer officer. DSC's headquarters will remain in Des Plaines, Ill., a suburb of Chicago.
DSC was founded in 1960 by Jim McIlrath as Dry Storage Corp. Drake joined the company in 1994. Over the years, she has become one of the logistics industry's most influential executives. In 2012, she received the annual "Distinguished Service Award" from the Council of Supply Chain Management Professionals (CSCMP), the organization's highest honor. In 2009, she was named a DC Velocity Rainmaker.
"CJ Logistics is the right fit at the right time," said Drake in a statement. Drake said CJ will "provide a global platform for DSC, while DSC will provide a platform of expertise, capabilities and leadership in the U.S."
The transaction is expected to close in the third quarter of 2018, the companies said.
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