Press Release

Notice of Completion of Acquisition of Equity Interest of MD Logistics, LLC and MD Express, LLC (Turning into a subsidiary)

NIPPON EXPRESS CO., LTD. (President and CEO: Mitsuru Saito) (the "Company" or "we") hereby announces, as follows, that, as announced on May 22, 2020, in the "Acquisition of Equity Interest of MD Logistics, Inc and MD Express, Inc. (Turning into a subsidiary)", it has completed the acquisition of the entire equity interests of MD Logistics, LLC and MD Express LLC (together, "MD Logistics") through the subsidiary, Nippon Express USA, Inc. (CEO: Toshiya Abe) (the "Acquisition")

MD Logistics, established in 1996, is a domestic logistics provider for the pharmaceutical and retail industries in the United States. MD Logistics' revenue for the fiscal year ending December 2019 was 51 million USD (about 5.5 billion JPY).

We, the Nippon Express Group, are developing a wide range of logistics service systems suitable for the pharmaceutical industry. In addition to investment in warehousing and delivery solutions in Japan in accordance with quality control standards based on the GDP guidelines, we are also working overseas to expand logistics facilities that comply with the guidelines for the relevant distribution of pharmaceuticals in each country.

Under the internal management system that complies with licensing and guidelines with regards to the handling of pharmaceuticals, MD Logistics provides distribution processing operations such as storage and packing at a range of temperature from -40℃ to +25℃, proving their strength in tailor-made services that meet the needs of each customer. Furthermore, MD Logistics also provides a speedy collection and delivery services that covers the entire United States. With 4 warehouses in Indiana, known as the "Crossroads of America", MD Logistics has attained excellent access not only to land transportation but also international and domestic air transport. Moreover, another warehouse in Reno, Nevada enhances accessibility in the western region.

By including MD Logistics into our Group as a subsidiary, we have acquired domestic logistics functions in the United States, which accounts for about 40% of global pharmaceutical demand and represents the largest consumer goods market in the world. Going forward, we look to provide integrated logistics services by combining our Group's international transportation network to support the globalization of our customers' supply chains.

(Note 1) MD Logistics' trade names were MD Logistics, Inc. and MD Express, Inc. However, as previously announced, the two entities have been reorganized to LLC (Limited Liability Company) as part of the transfer procedure of equity interests.


Overview of MD Logistics

(1) Trade name MD Logistics, LLC. MD Express, LLC.
(2) Headquarter address 1301 Perry Road, Suite 101 Plainfield, Indiana 46168
(3) Representative Mark Sell
(4) Businesses Warehousing, distribution and logistics services Domestic transportation services
(5) Year of incorporation 1996
(6) Employees 270 (approximate)
(7) Warehouses 1,000,000 sqf. (93,000 m2) approx.
(8) Group performance of the latest business year(ending December 2019) Sales USD 51.0mn(approximate JPY 5.5bn)
(9) Major shareholders (shareholding percentage) Nippon Express USA, Inc. (100%)