Singapore’s global container shipping and logistics company Neptune Orient Lines Ltd. has reached an agreement to sell its APL Logistics business for $1.2 billion.

The buyer is the Japanese shipping company Kintetsu World Express Inc.

“Since 2013, we have laid out a strategy to strengthen our international presence especially in the U.S. and Asia. This transaction fits right into our strategy,” said Satoshi Ishizaki, group president and CEO of KWE.

KWE plans to keep APL based in Singapore and will operate as a separate unit within the company.

“The proposed transaction with KWE is expected to provide APL Logistics with the opportunity to expand its business with the backing of a company with strong fundamentals and a commitment to grow in the logistics space. We believe that KWE has the ability and the ambition to continue APL Logistics’ growth strategy,” said Ng Yat Chung, group president and CEO of NOL.

The deal is subject to shareholder and regulatory approvals.

APL Logistics President Beat Simon said Kintetsu was acquiring a company that had grown nearly five times since being incorporated in 2000 and made $1.7 billion in revenue in 2014, according to a release on the KWE website. APL reportedly received about two-thirds of its revenue by doing business in the U.S. last year.

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