Kuayue Express, a China-based delivery services provider backed by logistics property developer GLP, agreed to sell a controlling interest to JD Logistics, a subsidiary of e-commerce group JD.com, yesterday for RMB3bn ($432m).
The deal is expected to close in the third quarter of 2020 and will involve JD Logistics acquiring both existing and newly issued shares in Kuayue Express.
Founded in 2007, Kuayue Express has built an integrated logistics network with services ranging from same-day delivery and intra-city shipping to cold-chain transportation for fresh produce. It oversees 13 freight planes and 17,000 trucks that operate across China.
GLP joined venture capital firms Eastern Bell Capital and Sequoia Capital to provide an undisclosed amount of funding for the company in 2018. It is unclear whether any of its existing shareholders will exit through the JD Logistics deal.
Zhenhui Wang, chief executive of JD Logistics, said: “Collaborating with Kuayue Express advances our integrated supply chain management, technology initiatives and service expansion to third party merchants.
“We will leverage our respective advantages and the synergy the collaboration creates to enhance the client experience and increase overall supply chain efficiency for JD and society at large.”
