Logistics and remittance service provider LBC Express Holdings, Inc. has acquired 100% of shares in Japanese balikbayan box shipping operator Mermaid Co., Ltd. for US$200,000.
LBC Express purchased all the shares of Tsukasa Takahashi, Mediatrix Takahashi, and Eiichi Gotoh in Mermaid Co. Ltd. through an acquisition agreement, the company disclosed to the Philippine Stock Exchange.
The purchase price, which was based on fair market value, will be paid in cash. LBC Express said the agreement will be closed once the purchase price is paid and relevant government agencies give their approval.
Mermaid Co., Ltd. operates a service in which the household products and other goods of expatriates living in Japan are shipped in balikbayan boxes to their home countries.
LBC Express said the acquisition is expected to contribute to its global revenue stream.
LBC Express is steadily expanding both its domestic and global reach. Overseas, it operates in more than 20 countries with a network of over 1,200 branches and a pool of 5,300 partner agents. Since last year, it has acquired, through business combination, 12 entities which are all located outside the Philippines, except for Quadx, Inc., which is home-grown. LBC Express has already divested its shares in QuadX.
This year, the company is spending about P200 million in capital expenditures to further expand its business, specifically by investing in branch expansion and acquisition of equipment.
In the Philippines, LBC Express operates three main hubs for sea cargo, and these are located in Manila, Clark, and Cagayan de Oro. As of end July 2019, the company has 1,430 branches operating in the Philippines.
LBC Express has been investing heavily in a three-year digital transformation program to further automate its processes and respond to changes in the logistics industry.
