UK. Kuehne+Nagel sells Contracts Logistics to XPO

23/05/2020

Kuehne + Nagel has decided to sell a major chunk of its Contract Logistics portfolio in the UK to XPO Logistics.  The scope of the transaction includes the drinks logistics, food services and retail & technology businesses.  These operations generated sales of approximately CHF 750 m (USD 810 m) in 2019 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.  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” declares Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG.  K+N remains “highly committed to excellent customer solutions and service in the UK across all business units” including contract logistics. In particular, the 3PL retains the industry verticals aerospace, government and pharma.  The transaction is subject to customary closing conditions including merger clearance by the competent competition authorities and is expected to close in the second half of the year.