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JWD InfoLogistics (SET:JWD) acquires Ocean Air International
BANGKOK, Oct 04, 2017 - (ACN Newswire) - JWD InfoLogistics PCL (SET:JWD) announced that subsidiary JVK International Movers, Ltd has acquired all shares in freight forwarder Ocean Air International Co Ltd, forming a leading 'Total Logistic Solutions Provider' ready to offer new forwarding services to JWD's existing customers, including international commercial and office moves, hazardous goods storage, LCL Consolidation Hub and Free Zone warehousing, and automotive-related cold storage services. JWD's existing warehousing and transport services will also be offered Ocean Air's local and international freight customers, with management describing the acquisition as a win-win deal that would expand both customer bases.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, says that the acquisition of Ocean Air, which specialises in international sea freight and airfreight services, would expand mutual business. The THB83m deal, he said, would create a new subsidiary for JWD, and transform it into a so-called 'Total Logistic Solutions Provider', with capabilities in marine and air logistics services in addition to existing inland logistics services.
As part of the deal, JWD acquired a management team with expertise in freight forwarding, which will help enable 'Total Sales Solutions' as a one-stop service centre. For the inbound segment, JWD will offer a comprehensive range of services, including freight forwarding, customs clearance, cargo transport and warehousing and cargo delivery. For the outbound segment, JWD will provide cargo transport, warehousing, handling (eg repackaging), customs clearance and freight forwarding services.
JWD will offer new freight forwarding services in i) Hazardous goods storage and management (following a concession to handle 150,000 hazardous cargo containers per year entering or leaving Laem Chabang Port); ii) Less Container Load (or LCL) Freight Consolidation Hub segment (to add convenience to customers) and free zone warehouse; iii) Automobiles and automotive parts for import and export; iv) Cold storage segment (its Free Zone cold storage warehouse at Bangna-Trat KM 19 will be upgraded to be a multi-country consolidation hub (or MCC) for storage of imported cargo for reexport); and v) Overseas household and office moving segment (for which it secured third-party freight services).
Mr. Bunditkitsada added that following the acquisition, JWD would realign its business by having JVK International Movers Ltd perform both household and office moving and freight forwarding services, led by Mr. Terapol Klayoo, CEO of Ocean Air International, and would explore further opportunities to invest both locally and internationally to continue expansion in the airfreight and sea freight forwarding businesses.
"This takeover is a strategic move to enter freight forwarding, which will allow us to provide logistics services for all modes of transport, including air transport and sea transport, offering 'Total Solutions' and convenience to our customers. We believe that JWD's experience as a provider of inland logistics and warehousing services, which involve complex business environments and require specialised knowledge and skills, will add the company advantages in raising the number of customers and delivering seamless services."
Given JWD's impressive nine-month results, Mr. Bunditkitsada is confident that the company's 2017 full-year growth rate will reach target levels of 7%. The company's Q2 net profit stood at THB49.5m, up 551% from THB7.6m a year earlier, and THB40.3m the previous quarter. The company's Q2 rental and service revenues reached THB577.8m from THB 557.6m a year earlier and THB572.8m the previous quarter.
Mr. Terapol Klayoo, CEO of Ocean Air International, a company with 20 years' experience as a freight forwarder, sea freight customers accounting for 70-80% and airfreight customers 20-30%, has a management team with extensive experience in the business. Ocean Air, among other things, provides freight forwarding services to customers in several industries who ship goods to Europe, United States, Australia, Israel, China, Indonesia, India and Vietnam, both Full Container Load and Consolidation. The Company is the Official Freight Forwarder of THE BANGKOK INTERNATIONAL MOTOR SHOW, specializing in EXHIBITION CARGO and the automotive industry, notably the Bangkok International Motor Show and Bangkok International Motor Expo.
Ocean Air's average total revenue figures over the past 3 years have been approx THB120m, while the company profit margin of 10-15% has been outstanding compared with the industry average. The acquisition of Ocean Air by JWD is a win-win deal, as JWD will benefit from the immediate opportunity to offer freight forwarding services to its existing customer base, providing a more diversified and comprehensive range of services as well as introducing warehousing and inland logistics services to its customers.
Contact:For JWD InfoLogistics:
Yuttachai ("Tle") Paikanahok
MT Multimedia Co Ltd
Tel: +66 2612 2081 #125
Mobile: +66 9 1736 2866
E-mail: yuttachai.p@mtmultimedia.com
Source: JWD InfoLogistics PCL
Sectors: Transport & Logistics
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