CJ Logistics has ambition to become “top-five global logistics company.”
South Korea’s CJ Logistics will acquire a majority stake in Des Plaines, Ill.-based DSC Logistics.
“CJ Logistics is the right fit, at the right time,” said Ann Drake, CEO of DSC Logistics. “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 U.S.”
CJ Logistics had sales last year of 7.1 trillion won ($6.1 billion). It is involved in forwarding and international express, stevedoring and transportation, contract logistics, parcel delivery and project logistics. Its parcel unit alone handled more than 1 billion deliveries last year even though that only accounted for 28.7 percent of its revenue. Contract logistics accounted for 32 percent of sales and global operations for 39.3 percent of sales.
In North and South America, CJ Logistics has been providing logistics services to the auto, electronics and consumer package goods industries.
Keun Tae Park, president of CJ Logistics, said, “Following our market expansion into China and Southeast Asia, we are pleased to join forces with DSC Logistics in the U.S. We look forward to combining our technical capabilities and network to create synergies and to become a market leader in U.S. logistics, especially in the W&D (warehousing and distribution) space.”
Pious Jung, chief executive officer of CJ America, said, “Together with DSC Logistics, CJ looks forward to maximizing customer value and being the preferred global SCM innovator partner in the U.S. We have a shared vision to become a top-five global logistics company.”
The deal is subject to regulatory and other customary approvals, but is expected to close in the third quarter of 2018.
Drake will remain as chair of the DSC advisory board and retain minority ownership.
The company’s senior leadership will remain in place, with Ed Bowersox as president, David Copeland as chief financial officer and Kevin Coleman as chief customer officer. DSC’s corporate offices will remain in Des Plaines.
DSC was founded in 1960 by Jim McIlrath in the upper floor of a former stockyards building on the southside of Chicago as Dry Storage Corporation.
Korea’s CJ Logistics acquires Illinois-based DSC
