Transport and logistics company, Kuehne + Nagel, has acquired a leading freight forwarder in Asia.
Following the satisfaction of all closing conditions, including the receipt of unconditional regulatory approvals from the competent authorities, Kuehne + Nagel has completed the acquisition of Apex International Corporation.
In 2020, Apex generated turnover of approx. €2 billion, gross profit of €269.6 million and earnings before taxes of €114.8 million and ranked seventh in terms of global air freight forwarding volume. In Q1 2021, Apex continued to perform strongly with turnover of €506.4 million, gross profit of €99.2 million and earnings before tax of €58.3 million.
Together, Kuehne + Nagel and Apex offer their customers a compelling value proposition in the competitive Asian logistics industry, especially in e-commerce fulfilment, hi-tech and e-mobility.
“With the acquisition of Apex, Kuehne + Nagel complements its successful organic growth strategy and substantiates its strong position as one of the world’s largest logistics providers,” said Dr. Joerg Wolle, Chairman of Kuehne + Nagel International AG.
“With this transaction we are expanding the Group’s service offering, networks and potential for growth, in Asia and globally.”
Kuehne + Nagel has acquired the majority of the shares in Apex. A minority participation remains with the Apex management, with the parties retaining customary contractual rights to acquire and sell these shares. The purchase price paid at closing amounts to approx. €1 billion and has been financed by the Group’s own funds and approximately 750,000 new Kuehne + Nagel shares issued out of authorised share capital. In addition, over the next three years, Kuehne + Nagel will have the opportunity to acquire all other shares in Apex for a performance-based consideration.
The experienced management team of Apex will continue to run the company, supported by the global network, capabilities and solutions of the Kuehne + Nagel Group.
The economic benefits of the Apex business have been effectively transferred to Kuehne + Nagel with effect from 1 January 2021 as per the terms of the transaction agreement. However, the Apex result will be fully consolidated in Kuehne + Nagel’s financial statements from the closing date of this transaction.
Last month, Kuehne + Nagel released its Q1 2021 results.