China Logistics Group, Inc. (OTCQB: CHLO), an international freight forwarder and logistics management company, announced today that the company sees opportunity for expansion through potential acquisition or merger in fiscal 2014.
For the past several years the logistics and freight forwarding industry in China has suffered from a sustained weakness in global demand largely due to a prolonged recession in the European Union and a significant slowdown in China’s domestic economy. During this time China Logistics Group began several initiatives for growth including diversifying its client base through expansion into new markets and broadening the scope of its services with the addition of limited domestic trucking services. While China Logistics Group believes its growth initiatives coupled with economic improvements in certain key markets will place the Company on a sustainable growth track, it also sees the potential to further accelerate that growth through strategic acquisition to reach greater economies of scale.
As a result management has begun to evaluate several potential acquisition opportunities and is in early stage due diligence with at least one potential acquisition candidate.
The Company intends to aggressively pursue these opportunities and is hopeful that at least one strategic acquisition will take place in the current fiscal year. Danny Chen, Chairman and CEO of China Logistics Group, commented, “We believe the logistics market will gradually recover as the world economy improves making this the perfect time to look for new opportunities to give us an advantage in this competitive market. We believe that the right strategic acquisition or merger will substantially accelerate growth in our business and set the stage for rapid expansion should markets improve substantially in the coming years.”
SOURCE China Logistics Group, Inc.
