Menlo Worldwide, the global logistics subsidiary of Con-way Inc., announced Wednesday, Sept. 5, that it has completed the acquisition of Cougar Holdings Pte Ltd., a Southeast Asia freight forwarding, warehousing, logistics and distribution management company with personnel, facilities and operations in Singapore, Malaysia and Thailand.
Menlo acquired Cougar Holdings and its primary subsidiary, Cougar Express Logistics, for U.S. $33.9 million. Menlo says the acquisition of Singapore-based Cougar Express bolsters its presence in Southeast Asia, adding 12 operating locations in the region with a client base of nearly 200 Asia-based and global businesses. In its most recent fiscal year, Cougar Express recorded U.S. $23 million in revenues.
“The completion of this transaction is an important competitive milestone for Menlo in Asia,” says Robert L. Bianco Jr., president of San Mateo, Calif.-based Menlo Worldwide. “We’re excited to welcome Cougar’s employees and customers to Menlo. Our focus now turns fully to integration planning and execution. We’ve already identified opportunities for growth and cost synergies, as well as potential new service offerings we can bring to market for our customers in Southeast Asia.”
Heinz-Peter Faust, chief executive officer of Cougar Express Logistics, notes that the organization combines proven experience in solutions for Asia-based logistics with strong capabilities in many of the region’s dominant industries, such as consumer electronics, automotive and chemical/industrial.
“Our customers can now leverage a global platform integrated with a superior regional service portfolio,” Faust says. “We know the unique logistics needs of this region and these key vertical markets. We believe our expanded organization has great potential to extend value deeper into our customers’ supply chain operations, driving growth with differentiated services across more geographies.”
Menlo funded the transaction from existing cash resources. The acquisition is expected to be accretive to Menlo’s earnings starting in the fourth quarter of 2007.