News / DP World completes Cargo Services acquisition

DP World has completed its acquisition of Hong Kong-headquartered freight forwarder Cargo Services Far East (CSFE), marking the end of a deal process almost a year in the making.

The deal has been something of an open secret in Hong Kong’s logistics and M&A circles – no price has been disclosed but it has been valued at anything between $300m and $800m by Bloomberg, as well as Loadstar Premium, in March this year.

However, with CSFE’s background as a sourcing agent in China in the fashion, apparel and footwear verticals, completion of the deal has given DP World a bridgehead into retail logistics.

It also has a division dedicated to supply chains supporting the cruise industry.

“Cargo Services’ logistics expertise and global network perfectly complement our own footprint, and will be yet another tool in our offering to customers,” said DP World chairman and CEO Sultan Ahmed bin Sulayem.

“By combining our strengths – technology, a growing logistics portfolio and strategic infrastructure – with Cargo Services’ expertise and network, we will be able to offer unparalleled value to customers seeking to strengthen existing trade ties or enter new markets”

The companies confirmed that CSFE owner John Lau will also transfer to DP World, to “ensure a seamless transition, Lau will remain with the business and assume a senior leadership position within DP World”.

“By joining DP World, we will gain access to extensive resources and expertise, allowing us to continue delivering top-tier freight forwarding and logistics services that our customers demand,” Mr Lau said.

Cargo Services employs more than 2,500 people in Greater China and across Asia, Europe, South Africa and the US.

DP World said the integration process would take place over the next few months, although it had already begun building its freight forwarding and logistics management teams.

Yesterday, ex-Panalpina and Agility Logistics veteran Patrick Jaegar revealed he had accepted the role of VP of freight forwarding for Southern Europe at DP World, reporting to Beat Simon, chief commercial officer for its logistics activities.

Mr Jaegar has spent the past three years as MD for Switzerland at JAS Worldwide.

DP World added that by the end of the year, it expects to operate more than 200 freight forwarding offices globally.