Hisane Masaki | May 24, 2011 7:41AM EDT
Japanese logistics operator Sumitomo Warehouse Co. says it is in advanced negotiations to acquire Weyerhauser’s wholly-owned ocean vessel subsidiary, Westwood Shipping Lines.
Sumitomo Warehouse said that it has recently obtained preferential negotiating rights to take over the business, which operates six ships in the Pacific Northwest carrying containerized and bulk cargo, including forest products for pulp and paper giant Weyerhauser and other companies.
In a story first reported by Japanese business daily The Nikkei, Sumitomo says it could sign a final purchase agreement for 100 percent of Westwood by June or July.
Westwood Shipping Lines and Weyerhaeuser are both based in Federal Way, Wash.
Sumitomo Warehouse, which signed a joint marketing agreement with APL Logistics last year, did not say how much it will pay for the acquisition. The U.S. shipping firm’s annual revenue totaled $246 million last year.
Westwood Shipping Lines is engaged in services between North America and three Asian countries — Japan, South Korea and China.
Based in Osaka City, Sumitomo Warehouse is mainly engaged in the integrated logistics business. The company posted about $1.6 billion in its fiscal year ending March 31, 2011.
