BEST Inc. (“BEST” or the “Company”), a leading integrated smart supply chain solutions and logistics services provider in China, announced that it has agreed to sell its express delivery business in China (the “Business”) to J&T Express Co., Ltd. (J&T Express China), a PRC limited liability company and a logistics services provider in China, at approximately RMB6.8 billion (US$1.1 billion) enterprise value. The sale does not include any of BEST’s other businesses, namely, Supply Chain Management, Freight, Ucargo and Global. The consideration to be paid for the Business is subject to certain adjustments and conditions under the terms of a definitive agreement entered into by the parties. BEST currently expects to receive approximately RMB3.9 billion (US$0.6 billion) for the Business in cash.
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This sale is subject to certain closing conditions and applicable regulatory approvals. The sale is currently expected to close in the first quarter of 2022.
Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, “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 capitalize on our strengths by focusing on supply chain-based logistics solutions and providing integrated supply chain, freight and global logistics services to our customers. At the same time, it will enhance our balance sheet and provide a better pathway to profitability. As we hone our offerings and consolidate resources around our core competencies, we are confident in our ability to drive improved customer service and satisfaction, enhance employee career development opportunities, and maximize value for our shareholders.”
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