Global transport and logistics company, Kuehne + Nagel, is selling 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 and technology businesses. These operations generated a turnover of approximately 750 million CHF in 2019 (approx. €709,387,349) and are supported by 7,500 employees.
“One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions,” said Kuehne + Nagel International AG CEO, Dr Detlef Trefzger.
“We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK,” he said. “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.