Singapore's Yang Kee Logistics has completed its $34 million acquisition of Axima, an Australian-based supply chain business with operations in China, the United States and Australia.
The logistics solutions provider's first major overseas acquisition is expected to increase overall profitability and boost its revenue by another $150 million.
The move follows the acquisition of two smaller Malaysian companies for about $1 million last year.
Yang Kee, which focuses on freight forwarding, contract logistics and transport and yard services will now have more than 650 staff across 11 countries.
The international freight management capabilities of Axima will drive the growth of Yang Kee's global ambitions by extending its footprint to huge developed markets, said the group.
Axima's significant presence in Australia, China and the US will add to Yang Kee's strong presence in South-east Asia to further strengthen its position in key trade lanes, deepen its capabilities and expand its offerings to customers.
"Prior to this acquisition, Yang Kee had a weak presence in China and practically none in Australia," noted Mr Ken Koh, group chief executive of Yang Kee Logistics.
The move was facilitated by trade agency International Enterprise (IE) Singapore.
Working closely with Yang Kee on merger and acquisition opportunities in new markets, IE Singapore has helped the company to make in-roads in established business networks and build capabilities in contract logistics.
IE Singapore assisted in the funding for consultancies and due diligence and in recommending professional services such as lawyers and auditors, said Mr Koh.
He highlighted IE Singapore's efforts in providing crucial connections and partners that matched the company's business development strategies.
"Their strong overseas network provided us with important business contacts such as potential customers and partners," Mr Koh also noted.
Mr Law Chung Ming, IE Singapore's group director for transport and logistics, said: "IE Singapore is working closely with companies like Yang Kee Logistics to adopt inorganic approaches such as mergers and acquisitions to grow in international markets.
"We are glad to see this win-win partnership being realised as it allows a high-growth SME like Yang Kee to expand its market and gain new capabilities, helping it become globally competitive."
Yang Kee's partnership with IE Singapore will continue as it seeks new opportunities in its growth journey, said Mr Koh.