KKR Selling One-Fifth Stake in Logistics Operator Logisteed to Japan Post for $944M

Fund management giant KKR has agreed to sell a 19.9 percent stake in its Tokyo-based logistics operator Logisteed to Japan Post Holdings for JPY 142.3 billion ($943.8 million).

The deal values Logisteed at over JPY 715 billion and is expected to create synergies through complementary customer bases and mutual use of vehicles and logistics sites, according to a Tuesday announcement by Japan Post, a TSE-listed courier, insurer and logistics operator that serves as the holding company for Japan’s national postal service.

Japan Post president and CEO Shinya Koike hailed Logisteed as the top third-party logistics player in Asia Pacific, pointing to the KKR unit’s global network, large and diverse customer base and operational execution capabilities.

“Through this capital and business alliance, the company aims not only to expand the international logistics business but also to further grow the domestic business-­to-­business logistics sector,” Koike said.

Former Hitachi Affiliate

Manhattan-based KKR acquired 100 percent of the voting shares in logistics firm Hitachi Transport System for JPY 670 billion in March 2023 before renaming the company as Logisteed the following month.

Logisteed operates three core businesses of third-party logistics, heavy transport and relocation, and freight forwarding through the deployment of 23,369 vehicles serving 1,300 domestic partner companies. The platform’s logistics centres globally provide 9.2 million square metres (99 million square feet) of warehouse space.

Logisteed president, chairman and CEO Yasuo Nakatani said the proposed partnership would combine Japan Post’s capabilities in domestic transport and delivery with Logisteed’s expertise in 3PL and digital technologies.

“Moreover, by reinforcing our overseas operations in collaboration with Toll Holdings Pty Ltd, Japan Post Holdings’ international logistics subsidiary, both companies will be positioned to expand their overseas 3PL and forwarding businesses and compete more effectively in the global market,” Nakatani said.

The deal remains subject to regulatory approval, and the specific roles and details of the collaboration among the parties are to be determined through future discussions.

Domestic Freight Volume Dips

KKR’s tie-up comes as Japan freight volume saw a decline in the first half of 2025, with tonnage falling 7.1 percent year-on-year and the Freight Activity Index recording a double-digit drop for a ninth straight quarter, according to Cushman & Wakefield’s Marketbeat update.

The consultancy attributed the downturn to labour shortages, reduced consumption amid rising prices and a decrease in housing starts and public works, all exacerbated by soaring construction costs.

Logistics costs are rising across industries, particularly in wholesale food and drinks, driven by higher warehouse operating fees and energy costs — suggesting a trend of pass-throughs by logistics providers, Cushman & Wakefield said.

“Some landlords are pursuing rent hikes to offset higher construction and maintenance costs, though acceptance is limited as weak freight volumes, cost pressures, and elevated vacancy rates temper negotiations,” the report said.