null XPO sale
Kuehne+Nagel have entered into a definitive agreement to sell a major part of its UK contract logistics portfolio to XPO Logistics.
The scope of the transaction includes the drinks logistics, food services and retail & technology businesses.
These operations generated a turnover of approximately CHF 750 million in 2019 and are supported by 7’500 employees.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, comments: “One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions. We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK. With XPO Logistics, we are pleased to have found a good new home for our customers and employees.”
Kuehne+Nagel remains highly committed to excellent customer solutions and service in the UK across all business units, including contract logistics. In particular, the company retains the industry verticals aerospace, government and pharma. These are amongst the Group’s scalable leverage areas.
Both parties have agreed not to disclose financial details. The transaction is subject to customary closing conditions including merger clearance by the competent competition authorities. The transaction is expected to close in the second half of the year.
Brian Cox, Managing Director Kuehne+Nagel UK - “This is an ambitious move for Kuehne+Nagel UK that positions us perfectly to play to our strengths and deliver integrated supply chain solutions to our target markets. It is a deliberately timed decision reflecting a dynamic market place that builds on our stated intent to lead a transformation where we can be more agile and responsive to the changing needs of our customers and the complex nature of their supply chains. Underpinning this is our ongoing commitment to invest in our people and technology to build best and most sustainable solutions for our customers.
At the same time I’m delighted that the future is bright for all our people with respect to our recent announcements. I am really proud of how everyone within Kuehne+Nagel UK has responded to the news and I sincerely thank them for it.”