Honour Lane Shipping sold to a consortium led by Nexus Point

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11/05/2022

9 May 2022

BDA advises Honour Lane Shipping on its sale to a consortium led by Nexus Point

BDA Partners is pleased to announce that its client, Honour Lane Shipping (“HLS”) has sold a majority stake to a consortium led by Nexus Point, an Asian private equity fund focused on control opportunities in Greater China. The selling shareholders will remain in the business and will continue to drive HLS’ growth alongside Nexus Point.

Established in 1997 and headquartered in Hong Kong, HLS is a leading global non-vessel-operating common carrier (“NVOCC”) providing freight forwarding services. It is consistently ranked as one of the largest NVOCCs in the Asia-US trade lane in terms of volume. HLS provides sea freight forwarding, air freight forwarding, and other value-added services to facilitate shipments across the globe. HLS operates a network of offices in Asia and in the US with a strong presence in Greater China and Southeast Asia regions.

BDA Partners acted as exclusive financial advisor to HLS on the transaction.

Vincent Chan, President, Honour Lane Shipping, said “I am delighted to welcome Nexus Point as a shareholder in HLS as we enjoy the fastest period of growth in our history. We are looking forward to working with their team as we continue to invest in the business to take full advantage of the dynamic changes currently underway in international trade. We are certain that our partnership will enable us to extend our leadership position in the strategic Asia-US lane and strengthen our offering in other markets including Europe, Oceania, and Latin America. We are excited to embark on this new journey with Nexus Point to introduce impactful solutions to our customers including via a dedicated e-commerce platform, expansion of our air freight capabilities, and a digital transformation which will enable us to offer a better experience to our customers and strategic partners around the globe.”

KC Kung, Founder and Managing Partner, Nexus Point, said “Our investment strategy centres around identifying companies with robust operating fundamentals, defensible market positions, and sustainable competitive advantages. HLS satisfies all these criteria thanks to its unique business model, deep relationships with customers and vendors, and profound understanding of the market and its players. We are thrilled to join forces with one of the most experienced teams in the Asian logistics sector and we are grateful for the trust placed in us by the shareholders and the management team. We are optimistic about HLS’ future as one of the largest NVOCCs in the transpacific lane, and are committed to take the company to new heights together with our new partners.”

Simon Kavanagh, Partner, Head of Hong Kong, BDA Partners, said “This transaction is another example of BDA’s expertise and ability in helping entrepreneurs and families to find new partners and transition to new phases of company ownership. It showcases our strength in transportation & logistics: this is the fifth Services sector transaction that BDA has closed in 2022. We look forward to witnessing the next stage of growth for HLS under Nexus Point ownership.”

HLS was also advised by Alvarez & Marsal (financial, tax), Simmons & Simmons (legal), PwC (commercial).