CJ Logistics Nearing $1.1 Billion Unit Sale to FountainVest
(Bloomberg) -- South Korea’s CJ Logistics Corp. is nearing a deal to sell its Chinese unit CJ Rokin Logistics Supply Chain Co. to FountainVest Partners, according to people familiar with the matter.
Negotiations on the final terms for the Shanghai-based unit are advanced and an announcement could come as soon as in the next few days, the people said, asking not to be identified as the discussions are private. A deal could value Rokin at about $1.1 billion, the people said. FountainVest is considering bringing in co-investors to take minority stakes in the company, they said.
Talks could be delayed or fall apart, and other bidders remain interested in the asset, the people said. A representative for CJ Logistics declined to comment. A representative for FountainVest did not immediately respond to requests for comment.
CJ Rokin owns more than 400 cold chain vehicles and more than 320,000 square meters of temperature controlled warehouse space, according to its website. Its customers include snacks and beverages giant PepsiCo Inc., Italian Nutella maker Ferrero Group and Swiss drugmaker Novartis AG. The company also operates more than 260 vehicles for hazardous materials. It was founded in 1985 by brothers Zhang Yurong and Zhang Yuqing.
CJ acquired Rokin in 2015 for 455 billion won ($411 million) and said it would invest a further 312 billion won. CJ Rokin is part of South Korean conglomerate CJ Group’s CJ Logistics arm, which has units in the U.S., India, Vietnam, Malaysia and the United Arab Emirates, according to its annual report.
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