Preferred Freezer Services on Thursday announced it has entered into a joint venture with Sinotrans Ltd., a leading logistics service provider in China, affiliates of Yang Ming Marine Transport Corporation and Tida Group, to build and operate cold chain logistics businesses throughout China.
Preferred Freezer has operated in China under a smaller joint venture since 2009. The new venture will leverage the company’s technology and refrigerated logistics expertise, and the local operating scale and capabilities of its strategic partners to address China’s rapidly growing demand for cold chain logistics services.
“Today’s announcement represents an important step forward for our business,” said John Galiher, Preferred Freezer president and CEO. “We believe that China’s cold chain logistics is still in its initial stages of development and through this strategic partnership with Sinotrans and Tand Ming, we will be well positioned to execute on significant growth opportunities and expand our footprint in the region. Importantly, our customer demand has experienced tremendous growth over the past few years and this joint venture provides Preferred Freezer with additional scale and local operating expertise to more effectively address their requirements in the Chinese market.
Completion of the transaction is subject to regulatory approval and customary closing conditions. Terms of the transaction were not disclosed.
