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Logistics firm JWD acquires 100% stake in Ocean Air International

Oct 04. 2017
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By The Nation

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JWD InfoLogistics Public Co Ltd (JWD) said on Wednesday that JVK International Movers Ltd, a subsidiary of JWD, has acquired 100-per-cent ownership of Ocean Air International Co Ltd, a Thai freight forwarding firm that specialises in international sea freight and airfreight services.

Charvanin Bunditkitsada, chairman of the executive committee and chief executive officer of JWD, said the Bt83-million deal will lead to the target firm becoming a new subsidiary of JWD and transform JWD into a so-called “total logistic solutions provider”, with capabilities to provide marine and air logistics services in addition to the existing inland logistics services.

As part of the deal, JWD has acquired a management team with expertise in freight forwarding. For the inbound segment, it will be able to offer a comprehensive range of services, including freight forwarding, customs clearance, cargo transport and warehousing and cargo delivery. The outbound segment will be capable of providing cargo transport, warehousing, handling (eg repackaging), customs clearance and freight forwarding services.

JWD also will enhance its competitiveness by offering freight forwarding services to its existing customers.

The CEO added that, after completion of the acquisition, JWD will realign its business by having JVK International Movers Ltd take care of both household and office moving and freight-forwarding services. Led by CEO Terapol Klayoo, Ocean Air International Co Ltd will explore further opportunities to invest both locally and internationally in order to continue its expansion in the airfreight and sea freight forwarding business.

Ocean Air International Co Ltd has reported average revenue of Bt120 million for the past three years, and the company’s net profit margin is 10-15 per cent, which is far above the industry’s average. The acquisition of its business through JWD’s subsidiaries is seen as a win-win deal, as it will benefit from an immediate opportunity to offer freight forwarding services to JWD’s existing customer base. JWD also will be able to provide a more diversified and comprehensive range of services as well as introduce warehousing and inland logistics services to its customers.

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