Menlo Worldwide has announced the signing of a definitive agreement to purchase Chic Holdings Ltd. and its wholly owned subsidiaries Shanghai Chic Logistics Company and Shanghai Chic Supply Chain Management Company for US$60 million plus an undisclosed future earn-out incentive based on its performance.
Headquartered in Shanghai, Chic Logistics is a provider of domestic third-party logistics and transportation management services in China. The company has a full-service portfolio and network with 130 operating sites in 78 cities, providing superior coverage of China's highly industrialized eastern sectors as well as the mainland's interior provinces. One of China's fastest-growing third-party logistics firms, Chic Logistics produced revenues of US$55.2 million in 2006, a 40 percent increase over 2005.
"Chic Logistics is highly respected within China as a superior operator with an excellent service reputation among customers," said Robert L. Bianco Jr., president, Menlo Worldwide. "This is the most strategic acquisition in Menlo's history. 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."