Carlyle invests $120m in Chinese logistics company ANE
Reuters and Steve Rogerson
July 14, 2015
Private equity firm Carlyle Group has agreed to pay $120m for an undisclosed stake in Chinese logistics firm Shanghai ANE Logistics as it seeks to benefit from China's booming e-commerce business.
Washington-based Carlyle said the transaction, financed from its Carlyle Asia Partners IV fund, was expected to close in the third quarter.
“China’s economic restructuring and e-commerce development bring about significant growth and consolidation opportunities in the country’s LTL logistics industry,” said Eric Zhang, managing director of the Carlyle Asia buyout team. “ANE is well positioned to unleash the growth momentum with its attractive franchise model and strong management team. We look forward to working with the management team to support the company’s continued growth through our industry expertise, global resources and extensive portfolio network.”
ANE, founded in 2010, operates distribution centres and franchised stores for smaller less-than-a-truckload deliveries of goods between 15kg and three tonnes.
The Chinese firm had previously secured investments from Sequoia Capital and Warburg Pincus, according to its web site.
“We value Carlyle’s experiences in the franchise model and its strong presence and proven track record in China,” said Wang Yongjun, chairman of ANE Logistics. “Through this partnership with Carlyle, we expect to enhance our infrastructure, expand our national network coverage and bring our business to a new level of success.”
Carlyle had invested approximately $5.9bn of equity in 80 transactions in China as of March 31, 2015.
In 2013, Chinese e-commerce giant Alibaba Group Holding launched its own logistics business, called Cainiao, with plans for 100bn yuan ($16.1bn) in investments over the following five to eight years, mostly on warehouses to help speed up delivery of goods.