D&D Holdings announced that it has entered into an equity transfer agreement with RK Transport LLC, a company that handles light cargo delivery services, primarily for frozen and refrigerated goods, and has made it a wholly owned subsidiary as of October 31.
Among the expected benefits of the subsidiary acquisition, the company cites expanding its business domain by incorporating frozen and refrigerated transportation, thereby responding to the diverse needs of industries such as food, restaurants, and pharmaceuticals.
Furthermore, to create synergies, the company will integrate the delivery network of Last Mile Partners (L1mP), which handles light cargo transportation within the D&D Group, with RK Transport's refrigerated delivery system to achieve efficient operations and vehicle utilization. To strengthen its revenue base, the company will aim to stabilize its revenue in the medium to long term by incorporating the high-priced cold chain sector. As for improving its management structure, the company will establish a management system that conforms to the D&D Group's governance policy.
Going forward, L1mP will leverage its sales and management infrastructure to drive demand creation for RK Transport's frozen and refrigerated deliveries, and further growth will be achieved by combining the management expertise of both companies. This will involve optimizing delivery efficiency, appropriately allocating personnel, and making continuous investments in equipment to build a higher-quality and more flexible last-mile delivery system.
L1mP has primarily operated a light cargo transportation business focused on ambient temperature delivery, but through this acquisition, it aims to establish a comprehensive last-mile delivery system that includes frozen and refrigerated delivery, thereby expanding services to existing clients and strengthening the revenue base of its light cargo transportation business.
■ RK Transport LLC Company Profile
Company Name: RK Transport LLC
Location: 1-55-5 Tokiwadai, Itabashi-ku, Tokyo
Establishment date: May 2019
Business Description: Light cargo transportation business, primarily focused on the delivery of refrigerated and frozen foods to online supermarkets and similar services.
Capital: 100 10,000 yen
Sales: Approximately 280 million yen (April 2024 fiscal year)
All funds received the highest "5-star" rating from GLP Japan/GRESB Real Estate.
