(PRESS RELEASE) SCHINDELLEGI, Switzerland, 9-Mar-2020 — /EuropaWire/ — Leading logistics group Kuehne + Nagel has announced it will divest a major part of its UK contract logistics portfolio. The NYSE listed transportation and logistics company XPO Logistics will take over these assets which include the company’s drinks logistics, food services and retail & technology businesses. Accumulated the turnover of the assets subject of the deal was in the CHF 750 million (~ EUR 708 million) range during 2019 and had employed some 7,500 people.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG on divesting significant non-core assets in the UK:
“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.”
Post divestment, Kuehne + Nagel will retain the industry verticals aerospace, government and pharma, which are are among the Group’s scalable leverage areas, while remaining highly committed to excellent customer solutions and service in the UK across all business units, including contract logistics.
Kuehne + Nagel and XPO Logistics have agreed not to disclose the financial details of the transaction as the deal is expected to close in 2H of 2020. The Kuehne + Nagel’s divestment of part of its UK contract logistics portfolio to XPO Logistics is subject to customary closing conditions including merger clearance by the competent competition authorities.
With over 83,000 employees at 1,400 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in sea logistics, air logistics, road logistics and contract logistics, with a clear focus on integrated logistics solutions.
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SOURCE: Kuehne + Nagel