Hong Kong-based Cargo Services Group and JL Enterprises Holdings are planning to sell their stakes in EV Cargo Holdings, which owns EV Cargo UK. Supply chain services provider Cargo Services and family-run freight forwarding and logistics firm JL Enterprises have confirmed they plan to divest their entire investment in EV Cargo Holdings, which is also based in Hong Kong.
Cargo Services and JL Enterprises was founded by Hong Kong tycoon John Lau. He is also the chairman of Hong Kong-listed CN Logistics International Holdings, and was a major investor in EmergeVest, the Hong Kong-based private equity firm which owns a majority stake in EV Cargo.
EmergeVest created EV Cargo in 2018 after combining six UK logistics companies in its portfolio. EmergeVest was considering strategic options for its majority stake in EV Cargo, following a surge in investor demand in the logistics sector, according to sources. Options were said to include a sale or an initial public offering of the business at a valuation of at least $1.5bn (£1.25bn).
“EV Cargo has now built a substantial European platform to service its many customers in the region, with around 550 employees working out of 25 locations in 8 countries and including nearly one million square feet of own-operated warehousing space. This transaction further strengthens our platform, adding excellent colleagues, capabilities and customers. We look forward to welcoming Allport Netherlands to the EV Cargo family,” said Heath Zarin, EV Cargo Founder and Chief Executive.
News of the divestment comes as EV Cargo continues on its acquisition trail. Last week the group announced the purchase of the remaining 60% of the shares of Allport Netherlands from its joint venture partner, subject to merger control approval. The acquisition will make EV Cargo the sole shareholder of the company, which provides air and sea freight forwarding and PO management services for importers and retailers across the Netherlands.
This latest purchase is part of EV Cargo’s stated aim to deliver more than $3bn of revenue in the near term through organic growth and strategic mergers and acquisitions. It follows EV Cargo’s acquisition of Fast Forward Freight, a Dutch air and sea freight forwarder with operations across Europe and the UK, and the purchase of UK and Spanish air freight forwarder Air Express Cargo in 2022.