MBK invests in China logistics player Apex International - update

The PE firm told local media it paid about $85 million. The investment comes from MBK's third fund, which closed at the hard cap of $2.7 billion in October 2013 and targets control transactions in Greater China, Japan and South Korea.

Apex was created in 2006 through the merger of the freight forwarding divisions of Apex Logistics International, Wuxi CTS Xinqiao International Forwarding and Beijing Global Sky-Horse. The company currently has 14 branches in China and seven in the US, offering access to a global forwarding network, warehousing and distribution facilities, inventory management solutions, and modern transportation capabilities.

According to an MBK statement, Apex dominates the major China to US routes for air freight forwarding and has significant market shares for routes to other parts of the world. It is also increasingly involved in sea freight forwarding and the provision of value-added logistics services.

"Apex Logistics is a proven industry leader in China's freight forwarding market, which has an attractive business model with high return on equity and stable margins, as well as resilience against economic downturns. The company has sustainable competitive advantages in securing low-cost freight capacity given its strong market share," said K.C. Kung, MBK's head of Greater China.

The private equity firm will work with management to expand Apex's geographic footprint and value chain through organic growth and add-on acquisitions. Steps will also be taken to improve its cross-border e-commerce services, following the introduction of ECMS Express in 2013.

MBK was founded by Michael B. Kim, former president of Carlyle Asia Partners, and has $8.1 billion in capital under management. The firm raised its first fund of $1.56 billion in 2006 and followed up with a second vehicle worth $1.6 billion three years later.

Recent activity has primarily involved exits. At the end of last year MBK sold Chinese waste-to-energy and wastewater treatment specialist GSE Investment Corporation (GSEI) to Beijing Enterprises Holdings (BEHL). This followed the sale of Japanese accounting software firm Yayoi to Orix Corp. and the sale of Korean bottle manufacturer Techpack Solutions to Dongwon Systems Corp.

An agreement was also struck to exit Taiwan-based TV operator China Network Systems (CNS) although subsequent difficulties for buyer Ting Hsin International Group have thrown the deal into uncertainty.

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• Topics
• Industrials
• Support services
• Greater China
• Buyouts
• China
• Logistics
• MBK Partners
• buyout