Menlo Worldwide to acquire Shanghai-based Chic Holdings

MENLO Worldwide, LLC, the global logistics subsidiary of Con-way Inc., has signed an agreement to purchase Chic Holdings and its wholly-owned subsidiaries Shanghai Chic Logistics Co., Ltd and Shanghai Chic Supply Chain Management Co., Ltd.

Menlo is acquiring privately-held Chic Holdings, a corporation registered in the Cayman Islands, and all of its assets and subsidiaries for a cash payment of US$60 million plus an undisclosed future earn-out incentive based on its performance, a Menlo statement said.

Shanghai-based 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 coverage of China's highly-ndustrialised eastern sectors as well as the mainland's interior provinces. Chic Logistics produced revenues of $55.2 million in 2006, a 40 per cent increase over 2005.

"Chic Logistics is highly respected within China as a superior operator with an excellent service reputation among customers," said Robert Bianco, president of 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."

Combined, the two companies will comprise more than 1,500 employees in China operating from 139 sites in 79 cities, with nearly 180,000 square metres of warehouse space under management. Menlo's China operations will be based at Chic Logistics' headquarters in Shanghai.