[110620.EN.BIZ] Nippon Express Pays US$51m For MD Logistics to Boost Pharma

JAPAN-BASED logistics firm Nippon Express has acquired Indiana-based MD Logistics in a deal worth JPY5.5 billion (US$51 million).

Nippon Express said the acquisition is part of last year's plan to make the "pharmaceutical industry a priority industry in our business plan and corporate strategy", reports London's Air Cargo News.

MD Logistics is an established logistics provider for the pharmaceutical industry in the US. It was established in 1996 and has 207 employees.

Said Nippon Express: "With the acquisition, we will gain access to the pharmaceutical distribution network in the US, which is the world's largest pharmaceutical market.

"By connecting MD Logistics with our international transportation network, we can benefit from an integrated and consistent logistics quality control across the entire US and globally.

"Furthermore, not only will the acquisition of MD Logistics provide us the ability to offer pharmaceutical logistics function but also furthermore our ability to expand our sales channel as we integrate different customer bases. In the future, we aim to maximize the synergies of the joint operation to provide higher quality services to customers worldwide," the company said.

Source : HKSG.