MBK exits China's Apex International

Financial details have not been disclosed, although a number of media reports have valued the deal at about $1.5 billion. MBK acquired the company, also known as Apex Logistics, in 2015 for $84.5 million via its third fund.

At the time of the initial investment, Apex had 21 offices in China and the US, offering a range of air and sea freight services, including warehousing, distribution support, inventory management, and transportation. The company now operates via 41 offices globally and serves more than 10,000 customers, with annual revenue reaching $2.3 billion in 2020.

MBK attributed growth to a focused strategy to develop expertise and penetrate key clients and industries. Apex has also made a number of add-on acquisitions and strengthened capabilities in cross-border e-commerce logistics. Expansion of the office network is said to have enabled improved provision of on-the-ground customer service across a footprint that now encompasses more than 100 countries.

The transaction, which is expected to close in April, will see company management retain a minority stake. Under Kuehne + Nagel's ownership, Apex will continue to operate as an independent entity, run by the existing team. Kuehne + Nagel said Apex represented its largest acquisition to date and a cornerstone of its broader Asia Pacific strategy, especially in e-commerce fulfillment and high-tech mobility.

“In the past years, Kuehne + Nagel strategically and with great efforts expanded and developed its business in Asia Pacific,” Joerg Wolle, the firm's chairman, said in a statement. “Today we are one of the leading players and are further accelerating our growth and impact in this region. Asia Pacific has consistently proven to be one of the most important drivers of global trade.

Kuehne + Nagel’s Asia push also includes a joint venture with Singapore's Temasek Holdings called Reefknot Investments. The entity was set up in 2018 with a view to developing companies in big data, predictive analytics, artificial intelligence, blockchain and robotics. Reefknot launched a $50 million early-stage logistics technology fund in 2019.

MBK closed its fifth North Asia buyout fund at the hard cap of $6.5 billion last year, making it the seventh manager in the region to cross the $6 billion threshold. The firm focuses on China, Taiwan, Japan, and Korea.

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• Topics
• Greater China
• Trade sale
• Industrials
• Support services
• China
• MBK Partners
• Logistics
• shipping
• Transportation
• Technology