Menlo to Buy Chinese Logistics Firm

Con-way Inc.’s logistics unit Menlo Worldwide said Sunday it signed an agreement to purchase the privately held parent company of a Chinese logistics firm for $60 million.

Menlo will buy Chic Holdings and wholly owned subsidiaries Shanghai Chic Logistics Co. and Shanghai Chic Supply Chain Management Co.

Menlo is acquiring privately held Chic Holdings Ltd., a corporation registered in the Cayman Islands, and all of its assets and subsidiaries for a cash payment of US$60 million plus an undisclosed future earn-out incentive based on its performance.

Chic Logistics, a third-party logistics and transportation management services company, operates 130 operating sites in 78 Chinese cities, and generated revenue of $55.2 million last year, up 40% from 2005.

The two companies will comprise more than 1,500 employees in China operating from 139 sites in 79 cities, with nearly 180,000 square meters of warehouse space under management, Menlo said.

Menlo’s China operations will be based at Chic Logistics’ headquarters in Shanghai.

Con-way Inc. is ranked No. 6 on the 2007 Transport Topics 100 listing of U.S. and Canadian for-hire carriers.