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XPO to acquire Kuehne+Nagel’s non-core UK logistics assets

Kuehne Nagel XPO
The deal is expected to close in the second half of this year

US-based transportation and logistics company XPO Logistics has agreed to buy Kuehne+Nagel’s non-core logistics assets in the UK, according to a press release.

The deal for XPO to buy Kuehne+Nagel’s logistics assets is expected to be completed in the second half of this year.

XPO will acquire Kuehne+Nagel’s inbound and outbound distribution network and reverse logistics management and inventory management services. The deal includes 75 of Kuehne+Nagel’s assets in the UK.

Most of Kuehne+Nagel’s assets in the UK serves the ecommerce, technology, and the food and beverage industry. The company generated revenue of around $650 million last year.

Reportedly, both parties have agreed to not disclose transaction details with regard to the deal.

Dr. Detlef Trefzger, chief executive at Kuehne + Nagel International told the media, “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.”

According to XPO Logistics, it will integrate the acquired operations on its technology platform to optimise synergies within its pan-European network.

Kuehne+Nagel, which is based in Schindellegi, Switzerland, operates in 36 countries with 345 branches across the globe. Its fleet includes 5,000 trucks and 7,000 trailers.

Last year, the company acquired two logistics companies in Europe. It acquired the overland and logistics units of Netherland-based Rotra and Austria-based Jöbstl. These acquisitions will help the company bolster its services in Austria, Belgium, Slovenia, and the Netherland.

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