Centurium backs China logistics player

The private equity firm is taking out an existing position in the company held by Warburg Pincus and injecting fresh capital, according to a source familiar with the deal. David Li, Centurium’s founder, previously worked for Warburg Pincus for more than a decade and the ANE investment was made during his tenure.

LTL operators normally provide road transportation for goods between 15 kilograms and 3 tons. Founded in 2010, Shanghai-headquartered ANE focuses on small items. Mini e-commerce orders account for more than 70% of its overall orders.

The company has established a national delivery network comprising self-operated sorting centers, contracted trucks and about 20,000 franchised pick-up-delivery stores, covering 96% of China’s lower-tier cities and countries. This franchise model has reduced the cost of last-mile delivery.

ANE raised a $6.3 million Series A round from Sequoia Capital China in 2013. Warburg Pincus then committed $50 million a year later. In 2015, The Carlyle Group invested $120 million in the company. CDH, Carlyle and Goldman Sachs are listed as ANE’s current backers.

“The trend towards concentration in China’s logistics industry is obvious. We see great opportunities over the next five years to expand our network, optimize operational efficiency and improve service quality. We will work hard to achieve the strategic goal of an average daily cargo volume of 100,000 tons and a market value of over RMB100 billion ($14 billion),” Yongjun Wang, group chairman of ANE, said in a statement.

Centurium closed its debut US dollar-denominated fund last year with commitments of $2 billion. The firm pursues control and significant minority deals in China’s consumer, services and healthcare sectors, with a focus on technology-enabled transformation.

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• Topics
• Greater China
• Expansion
• Trade sale
• China
• Centurium Capital
• Warburg Pincus Asia
• Logistics