[CJ Logistics]
SEOUL -- CJ Logistics announced a deal Friday to buy a U.S. logistics company as the arm of South Korea's food and entertainment conglomerate CJ Group seeks to become a market leader through acquisitions and mergers, especially in Asia and North America.
CJ Logistics said in a regulatory filing that it would buy a 90 percent stake in DSC Logistics for 231.4 billion won ($216 million). The acquisition will be completed on November 15. The company hopes to become a top-tier logistics firm in the U.S. market through the acquisition of DSC Logistics.
"Following our market expansion into China and Southeast Asia, we are pleased to join forces with DSC Logistics in the US," CJ Logistics President Park Keun-tae said in a statement, adding his company would combine its technical capabilities and network to become a market leader, especially in warehousing and distribution.
The CJ group has sought aggressive expansion since chairman Lee Jay-hyun came back to his office in May last year after four years of absence. It has subsidiaries specializing in food, food service, pharmaceutics, biotechnology, entertainment, media, home shopping and logistics.
In April, CJ Logistics forged a strategic alliance with Vietnam's low-cost carrier Vietjet Air to cooperate in air logistics.
"CJ Logistics is the right fit, at the right time," DSC Logistics Ann Drake was quoted as saying. "CJ shares our passion for dynamic supply chain leadership and will provide a global platform for DSC, while DSC will provide a platform of expertise, capabilities and leadership in the US."
