A Chinese warehouse company and a U.S. company specializing in refrigerated cold storage are teaming up to provide a new cold storage option in China.
China Merchants Americold Logistics, a 51-49 joint venture established by China Merchants Holdings (International) and Americold Realty Trust, completed the acquisition of 70 percent of China Merchants International Cold Chain (Shenzhen) from CMHI and has signed a definitive agreement to acquire KangXin Logistics from Rich Products.
All told, the deal is worth about US$90 million.
KXL is a third-party cold chain logistics company, serving some of the world’s largest multinational food companies as well as Rich’s own warehousing and distribution needs in China.
The new partnership will “develop and promote cold chain logistics services in the broad consumer goods market in China,” CMHI Chairman Fu Yuning said.
As the largest public port operator in China, CMHI has a comprehensive network of container ports and bonded logistics zones along China’s coast serving customers in China and overseas. Americold, in operation since 1931, is the world’s largest cold chain logistics operator.
KXL owns and operates five temperature-controlled distribution centers in China — in Beijing, Tianjin, Suzhou, Qingdao and Guangzhou, with satellite warehouses in eight more cities. A new facility in Harbin will open in the fourth quarter, bringing KXL’s total temperature-controlled warehousing capacity to 560,000 square feet. KXL also operates more than 110 temperature-controlled vehicles, and is able to move perishable food products nationwide.
Rich Products officials said the company plans to continue aggressive growth in the frozen food, bakery and food service sectors in China and throughout Asia. Revenue for that expansion will come from the sale of KXL, the company said.