XPO to acquire Kuehne + Nagel's UK contract logistics unit
CONNECTICUT's XPO Logistics plans to acquire Kuehne + Nagel's UK contract logistics unit
CONNECTICUT's XPO Logistics plans to acquire Kuehne + Nagel's UK contract logistics unit. The move comes two months after XPO announced plans to divest potentially all of its operating segments, except for its less-than-truckload (LTL) business.
The company says it has entered into an agreement to buy the bulk of Kuehne + Nagel's contract logistics segment in the UK, reported New York's FreightWaves.
The acquisition includes Kuehne + Nagel's operations that provide inbound and outbound distribution, reverse logistics management and inventory management. Revenue in these operations are derived from the beverage, technology and e-commerce sectors and totaled GBP500 million (US$656.4 million) in 2019.
XPO said that the deal will strengthen its contract logistics offering in the UK, adding 75 facilities and a 'blue-chip customer base' to the segment. XPO plans to integrate Kuehne + Nagel's business onto its technology platform under its pan-European network.
Kuehne + Nagel stated that the transaction includes its 'drinks logistics, food services, retail and technology businesses,' with 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. We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK,' said Kuehne + Nagel CEO Detlef Trefzger.
As previously announced, XPO's divestiture plan is to put $13 billion of the company's $17 billion in revenue up for sale. When announced in January, all units except for LTL were being sold.