Hisane Masaki, Special Correspondent | Mar 30, 2012 9:56AM EDT
Nippon Express Co., Japan’s largest international freight forwarder, said that it has acquired a 100 percent stake in U.S. logistics company Associated Global Systems, Inc. (AGS) though its local subsidiary, Nippon Express U.S.A., Inc.
Nippon Express said New Hyde Park, N.Y.-based AGS, a mid-sized logistics company engaged in domestic and international transport and warehousing in the U.S., has a solid reputation for providing meticulous service, including time-stipulated deliveries, in its mainstay domestic transport business.
AGS also boasts impressive know-how in the special transport needed for precision instruments and oversized cargo, counting many U.S. companies among its clients, Nippon Express said.
“Although focused primarily on air and ocean cargo forwarding to and from the U.S., Nippon Express U.S.A. has also been offering incidental storage services as well as removals services, and in recent years it has begun in earnest to undertake transport operations within the U.S.,” Nippon Express said in a statement.
“By making AGS, a company with proven capabilities in this area, a wholly-owned subsidiary, Nippon Express U.S.A. hopes to expand its logistics operations within the U.S. and reinforce its business infrastructure through the mutual use of networks,” the Japanese logistics giant said.
“Nippon Express is committed to enhancing its locally-rooted logistics services around the world in order to better serve the diversifying global business operations of its customers,” the firm added.
AGS was established in 1958. It is capitalized at $46,950 and currently has 282 employees. It posted about $134 million in revenue in its last financial year, which ended on July 31, 2011.
Tokyo-based Nippon Express expects its own group revenue to total $21.32 billion in its current financial year ending on March 31, 2012, up 0.2 percent from the previous fiscal year.
Contact Hisane Masaki at yiu45535@nifty.com.
