Kuehne + Nagel has entered into a definitive agreement to sell a major part of its United Kingdom contract logistics portfolio to XPO Logistics.
The scope of the transaction includes the drinks logistics, food services and retail and technology businesses. These operations generated a turnover of approximately CHF750 million (US$810.5 million) in 2019 and are supported by 7,500 employees, according to Kuehne + Nagel.
Both parties have agreed not to disclose financial details. The transaction is expected to close in the second half of the year and is subject to customary closing conditions including merger clearance by the competent competition authorities.
“One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions,” Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, commented. “We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK.”