“K” Line acquired a 51 percent share in the U.S.-based logistics service provider Air Tiger Express Companies.
The two companies signed an agreement sealing the deal Wednesday in Tokyo.
“K” Line said its capital participation in ATEC is aimed at enhancing the “K” Line Group’s freight forwarding business and significantly expanding revenue opportunities together with its own logistics operations. It said ATEC would give it focus on the air freight, customs brokerage and buyers’ consolidation businesses.
International Air Freight Industry: By The Numbers.
“ATEC has a solid operations base and extensive network in the Asia market, including China, which is showing remarkable growth in the logistics business,” “K” Line said in announcing the deal.
ATEC, headquartered in New York City, conducts business in the United States, China and elsewhere, with a focus on areas in Asia, providing for businesses a variety of services that include air and sea cargo forwarding, customs clearance, storage and cargo insurance.
“K” Line said even though ATEC is a medium-sized company, with only around 750 employees, it is a promising enterprise with a strong link to the fast-growing international logistics market in China.
The acquisition agreement was signed by ATEC CEO Richard Chu and President and COO David Xiao, as well as “K” Line President and CEO Kenichi Kuroya, Vice President and Assistant to the CEO Toshio Shimizu, and Senior Managing Executive Officer Keisuke Yoshida.
Chu, who founded ATEC's predecessor company in Taiwan in 1976, moved the company to the United States in 1982. Subsequently, the company expanded its bases to include not only various parts of the U.S. but also locations in Southeast Asia and China; and in 2006 the companies handling the businesses in each area were reorganized to create today's holding company ATEC.
ATEC’s major subsidiaries are Air Tiger Express (USA); Air Tiger Express (Asia), which coordinates the Asia business companies; and Shenzhen Airport ATE Int’l Freight, a joint venture with the Shenzhen Airport Authority.
“K” Line Group’s international freight forwarding business currently comprises two core companies: “K” Line Logistics, which is primarily involved in air and sea forwarding, and U.S.-based Century Distribution Systems, which is primarily involved in buyers’ consolidation.