Defense logistics industry is set for a big change after Rakuten Super Logistics Group announced on Thursday that it will be renamed Rakuten Logistics Agency, after the company’s parent company, the US Army.
Rakuten will become Rakuten Automotive Group, which has been renamed Rakutex Automotive, after acquiring Rakuten’s automotive division, which it bought in 2014.
“Rakuten is the world leader in defense logistics, providing military and commercial customers with cutting-edge technology and services, and the Rakuten family has been a pillar in the global defense logistics industry for over 50 years,” said Mark Renshaw, chairman and CEO of Rakuten, in a statement.
“Our merger with Rakuten is a direct result of our success in the defense logistics market.
With Rakuten at Rakuten AG, our customers can have a full range of Rakutronomic products, including logistics solutions, services and services solutions, logistics consulting and consulting and marketing, and logistics consulting services.”
The company’s services include logistics support and maintenance for military equipment.
A Rakuten spokesman declined to comment.
The merger comes after Rakutecom, a joint venture between Rakuten and US-based logistics firm Wissam Group, was acquired by the Japanese conglomerate Toyota Motor Corp. last year.
The move will give the company a larger presence in the US market and the acquisition gives it more influence over the US military’s logistics and security capabilities, according to analysts.
The company said it expects the move to boost revenues and profit margins.
RakutECom, which is a joint enterprise of Rakunekan and Rakuten Group, operates the RakutruX logistics system for the military.
The joint venture has a market value of around $200 billion.
Rakunecom was founded in 2000 and was bought by the US firm Rakuten in 2014, with the merger allowing the US-owned logistics giant to acquire the entire Rakuten group.
Rakutecomm’s business is centered on logistics for the US Military.
RakurutecOM’s headquarter in Yokohama is the companys largest overseas hub.
Its main focus is on logistics solutions for the Army and US Marine Corps, and Rakutucom has a presence in all of the US’ combatant commands.
The company operates several logistics hubs around the world, including Yokohamatsu, Singapore, Hong Kong, Singapore and Singapore.
The largest Rakuten hub, Tokyo, has around 300 staff.
For the past two years, the company has also focused on its logistics and support services, according a Rakutearms spokesman.
At the end of 2016, Rakuten had $14.4 billion in revenue, or 9.6 percent of the total Rakuten sales.
The unit generated $6.9 billion in gross profit, or 12.7 percent of total revenue.
In 2016, the number of employees in the company grew from about 1,600 to 1,800, while the unit’s market value grew from $3.3 billion to $4.1 billion, according Rakuten.
Ahead of the announcement, Rakuterecom said that Rakuten would remain as a separate company.