Japan Post is paying ¥142.2 billion ($949 million) for a stake in logistics company Logisteed, according to Nikkei, as the state-backed postal operator seeks growth beyond its deteriorating mail business.
The company will acquire 14.9% of voting rights and 19.9% including non-voting shares from private equity firm KKR, with the transaction expected to close as early as December. Japan Post will also place a director on Logisteed’s board.
The investment comes as Japan Post’s core postal operations face mounting losses, with the business reporting an ¥89.6 billion deficit in 2023. Mail volumes have declined 6% to 7% year-over-year as digitalization erodes demand, forcing the government to consider subsidies to keep the network operational.
Logisteed, formerly Hitachi Transport System before KKR’s ¥670 billion acquisition in 2023, generated ¥669 billion in revenue for the nine months through December 2024. The company specializes in business-to-business logistics services that contrast with Japan Post’s consumer-focused parcel delivery.
Japan Post aims to combine its home delivery network with Logisteed’s supply chain operations, though integrating the two businesses may prove challenging given their different customer bases and service models. KKR has been preparing Logisteed for a potential public listing in 2027.
