Background
- Senko Group Holdings (Senko) was established in Osaka, Japan in 1946. It is an integrated logistics company offering a wide range of services including trucking, railroad traffic, marine transport, harbor transport, international forwarding, warehousing, contracted in-factory work, and the operation of physical distribution centers
- Senko established Senko Logistics Australia Pty. Ltd. in 2010. It subsequently invested in precision machinery and automotive component transportation operator AirRoad Pty., Ltd. in 2021, thereby expanding its 3PL business in Australia
- Simon Transport is a long-established company with a 98-year history, involved in land and rail transportation as well as warehousing business in Australia. It offers high quality logistics services, including heavy cargo and special large-scale cargo services, with a proven track record serving Japanese companies and major global corporations
Process
- Senko engaged DC Advisory as exclusive buy-side financial advisor on the acquisition of Simon Transport
- DC Advisory advised Senko on all key aspects of the transaction including: deal structuring, valuation and negotiations, preparation of documentation and coordination of workflows, and due diligence coordination
Outcome
- On 28 March 2024, Senko completed the acquisition of a 75% stake in Simon Transport
- With Simon Transport becoming a member of the group, Senko will focus on further expanding the business on a global scale, leveraging the know-how and networking capabilities that Simon Transport possesses with heavy cargo transportation
- With this acquisition, Senko aims to deepen its presence in Australia and become one of the largest Japanese logistics players operating in the country
- This transaction demonstrates DC Advisory's expertise in cross-border transactions and bolsters its credentials in the Asia Pacific logistics industry
“With the slogan "Moving Global," we are actively investing in new businesses to take on the world. We requested advice regarding the acquisition of Simon Transport, a company with a proven track record in heavy goods transportation in Australia. We are delighted to have signed with DC Advisory. The DC Advisory team of Mr. Oda and Mr. Victor Yeo, located in Japan and Singapore respectively, quickly and proactively crafted proposals tailored to the buyer from multiple locations. Their various ideas for overcoming complex issues were very helpful during negotiations with the sellers. We believe that this acquisition will be a major step towards expanding Senko Group Holdings' network.”
“It has been an honour to assist Senko in completing this important transaction, marking its second acquisition in Australia and strengthening its footprint in the Asia Pacific logistics industry. This deal is testament to our long-standing relationship with Senko. We look forward to seeing more growth and success for Senko and Simon Transport in the years ahead.”
