XPO to Acquire Majority of Kuehne + Nagel’s UK-Based Contract Logistics Operations
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XPO Logistics is acquiring the majority of the United Kingdom-based contract logistics operations of Kuehne + Nagel, according to a March 9 news release. The deal includes 75 facilities and Kuehne + Nagel’s customer base, Greenwich, Conn.-based XPO said, noting that the addition will complement its existing European operations.
“XPO will integrate the acquired operations on its technology platform to optimize synergies within its pan-European network,” the company said.
The Kuehne + Nagel business generated total revenue of about £500 million ($645.6 million) in 2019, primarily through beverage, technology, e-commerce and food service verticals, XPO said. Inbound and outbound distribution, reverse logistics management and inventory management are among Kuehne + Nagel’s businesses. The company is headquartered in Switzerland.
Kuehne + Nagel International AG
The deal is expected to close in the second half of 2020. J.P. Morgan Securities is advising XPO.
“One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions,” Kuehne + Nagel CEO Dr. Detlef Trefzger said in a statement. “We have now reached a major milestone in this effort, having secured an agreement to sell significant noncore assets in the U.K. With XPO Logistics, we are pleased to have found a good new home for our customers and employees.”
XPO ranks No. 1 on the Transport Topics Top 50 list of the largest logistics companies in North America, and No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers. Kuehne + Nagel, a global logistics company with locations worldwide and North American headquarters in Jersey City, N.J., ranks No. 12 on the TT Top 50 logistics companies list. — Transport Topics
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