Hitachi Transport System signed a basic agreement to acquire 100 percent of Flyjac Logistics, a major Indian forwarder providing services to the United States and Europe as well as local corporate customers.
As part of its global expansion strategy, Hitachi made a foray into the Indian market in November 2007 with local subsidiary Hitachi Transport System India. Hitachi said it expects to expand in the fast-growing Indian market through synergies between its Indian subsidiary and Flyjac's local network.
Hitachi did not disclose the transaction value, but the Nikkei, Japan's biggest business daily, reported in its Friday evening edition that the purchase price is believed to be a little more than $55.6 million.
The Tokyo-based logistics arm of industrial conglomerate Hitachi, Ltd., with operations around the world, especially North America, Europe and Asia, posted group revenue of about $3.7 billion in the financial year ended on March 31.
Mumbai-based Flyjac, with operations across India, has annual revenue of about $82.2 million.
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