Chatham, New Jersey, USA-headquartered Preferred Freezer Services has entered into a joint venture with three partners: Sinotrans Limited, a leading logistics service provider in China; affiliates of Yang Ming Marine Transport Corporation, a Taiwanese global cargo services provider; and the Yida Group, an urban design and real property developer. Together, they intend to build and operate cold chain logistics businesses throughout the PRC.
Terms of the joint venture were not disclosed, and completion of the deal is subject to regulatory approval and customary closing conditions.
Preferred Freezer Services, which is majority owned by New York-based private equity firm Fenway Partners, has operated temperature controlled warehouses in China since 2009. The new venture will leverage its technology and refrigerated logistics expertise, and the local operating scale and capabilities of its strategic partners to address China’s rapidly growing demand for cold chain logistics services that is being driven by food safety issues and rise of the nation’s middle class.
“This represents an important step forward for our business,” said John Galiher, president and ceo of Preferred Freezer Services. “We believe that China’s cold chain logistics is still in its initial stages of development and through this strategic partnership with Sinotrans and Yang Ming, we will be well positioned to execute on significant growth opportunities and expand our presence in the region. Our customer demand has experienced tremendous growth over the past few years, and this joint venture provides us with additional scale and local operating expertise to more effectively address their requirements in the Chinese market.”
Peter Lamm, co-founder and managing director of Fenway Partners, commented: “This is a powerful development for Preferred Freezer Services and underscores our confidence in the potential of the business. Sinotrans and Yang Ming have unparalleled regional experience in transportation and logistics solutions that will help Preferred to further expand its global footprint and brand recognition.”
Sinotrans, headquartered in Beijing, is engaged in freight forwarding, shipping, storage and terminal services, marine transportation and other activities including trucking and express services. Leveraging its comprehensive network, integrated logistics service model and professional expertise, Sinotrans provides a complete range of logistics services.
Yang Ming, headquartered in Keelung, Taiwan, is principally engaged in the shipping business. The company operates primarily through the provision of domestic and overseas marine shipment and passenger service, warehouse, pier, tug boat, barge, container freight station and terminal operations, maintenance and repairs, chartering, sales and purchase of ships, maintenance and repairs, lease, sales and purchase of containers as well as chassis, shipping agency, and ocean freight forwarding service.