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QUEENS, NY (October 3, 2005)— IJS Global Inc.®, a fast-growing international air and ocean freight forwarder, customs broker and non-vessel operating common carrier, said today it has acquired the ESI Group, a holding company that includes ESI Freight Ltd., a Hong Kong-based air and ocean forwarder, and ESI Freight (China) a Shanghai-based forwarder serving mainland China.
The transactions, terms of which were not disclosed, mark IJS Global’s first acquisitions outside the United States and extend the company’s reach into the trans-Pacific and intra-Asian freight markets.
Under the new organizational structure, Hong Kong will become IJS Global’s Asian regional headquarters. ESI China, which is ESI’s Freight’s joint venture in China, will represent IJS Global’s interests on the mainland. IJS Global will retain senior managements at both companies, including Simon Tam, President, ESI Freight, and Edmund Lin, President, ESI China. Both ESI companies have been in business since 2001.
“As we expand our presence beyond the U.S., we will first pursue opportunities in Asia because of its spectacular growth prospects,” said John Gallahan, president and CEO, IJS Global. “In ESI Freight and ESI China, we have acquired companies with solid managements, proven and successful business models, strong product and geographic niches, and growing customer bases. They are the ideal partners to help us launch the next phase of our global growth strategy.”
IJS Global’s expansion into Asia comes amid bullish prospects for the continent’s transportation and logistics sector. According to transport consultancy MergeGlobal Inc., the intra-Asia air cargo market is forecast to show 7% compound annual growth through 2009, with much of that growth centered on China. In addition, a study by research firm Transport Intelligence Ltd. predicts China’s logistics market to expand by 33 percent annually through 2007.
Gallahan said IJS Global plans to leverage the capabilities of ESI Freight and ESI China, combined with future acquisitions, to dramatically increase its market share in trans-Pacific and intra-Asian lane segments.
Said Simon Tam, ESI Freight’s president, “The merger of ESI into the IJS Global network will allow us to dramatically expand our geographic coverage and product menu, providing our customers with richer resources to capitalize on the opportunities in China and across Asia. Supported by IJS Global, we expect to elevate our business and become a truly competitive global player in the logistics field.”
ABOUT IJS Global Inc.®
Headquartered at New York’s JFK International Airport, IJS Global, Inc. is building a global logistics footprint through a carefully calibrated strategy of internal growth and timely acquisitions. It operates out of six U.S. offices as well as internationally through a network of agents and company owned offices. IJS Global was acquired in December 2004 by Brynwood Partners V L.P. Brynwood Partners is a private equity fund established in 1984 to invest in small, mid-market businesses specializing in consumer products, light industrial manufacturing, specialty retailing and business services.
IJS Global can be found online at www.ijsglobal.com. Brynwood Partners can be found online at www.brynwoodpartners.com.
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