Carlyle to invest $120m in Shanghai ANE Logistics

The transaction, which will come from the $3.9 billion Carlyle Asia Partners IV, is expected to close in the third quarter.

Shanghai-headquartered ANE, founded in 2010, claims to be the largest less-than-truckload (LTL) operator in China working under a franchise model. It provides road transportation and delivery services for cargos between 15 kilograms and three tons. The company's national delivery network comprises self-operated sorting centers, contracted trucks and about 5,000 franchised pick-up-delivery stores.

"China's economic restructuring and e-commerce development bring about significant growth and consolidation opportunities in the country's LTL logistics industry," said Eric Zhang, a managing director with Carlyle's Asia buyout team, in a statement. "ANE is well positioned to unleash the growth momentum with its attractive franchise model and strong management team."

ANE Logistics plans to use the new funding to improve its infrastructure, expand national network coverage and upgrade its business offerings.

Warburg Pincus re-upped $50 million in ANE last July, having invested an undisclosed sum early in the year. Prior to that, the business raised $6.3 million in a Series A round of funding from Sequoia Capital.

Spurred by a lack of high-quality supply and rising demand from retail customers, private capital is flooding into China's logistics sector - coming directly from sovereign wealth funds and pension funds as well as through private equity funds. Warehousing providers and third-party logistics players are popular targets.

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• Topics
• Greater China
• Expansion
• Support services
• China
• Logistics
• The Carlyle Group
• Growth capital
• Transportation