Best Express offers express delivery of parcels weighing usually less than 15kg
Best Express is a delivery service provider for parcels. (Credit: BEST Inc.)
Best, a Chinese smart supply chain solutions and logistics services provider, has agreed to sell its express delivery business in China to J&T Express China for a price of around CNY6.8bn ($1.1bn)
J&T Express China is a logistics services provider in China. It is a subsidiary of Indonesian logistics company J&T Express.
Known as Best Express, the business involved in the deal, is a delivery service provider for parcels. It offers express delivery of parcels usually weighing less than 15kg through its self-operated hubs and sortation centres and a network of franchisee partners operating more than 55,000 service stations.
Best Express offers capabilities such as time-window delivery and customisable options for cash-on-delivery (COD), proof of delivery (POD), rush delivery, and declared value coverage.
The sale excludes Best’s other businesses, which include Supply Chain Management, Ucargo, Freight, and Global.
The company, through its technology platform and networks, offers logistics and value-add services such as express and freight delivery, last-mile services, supply chain management, truckload service brokerage, international logistics, as well as financial services.
Best chairman and CEO Johnny Chou said: “Best operates with a vital and compelling mission in today’s marketplace – to empower businesses and enrich society with a smarter, more efficient supply chain. Toward this end, we have made significant progress by leveraging technologies and innovating business models.
“In light of the unexpected ongoing challenges from COVID-19 and evolving industry dynamics, we believe this transaction allows us to better capitalise on our strengths by focusing on supply chain-based logistics solutions and providing integrated supply chain, freight and global logistics services to our customers.”
Chou added that the sale of the express delivery business will also boost the company’s balance sheet and lay a better pathway to profitability.
Best said that it is likely to get nearly CNY3.9bn ($600m) in cash proceeds from the divestiture.
The deal, which is contingent on certain closing conditions and regulatory approvals, is currently anticipated to close in Q1 2022.