Schindellegi, Switzerland: Kuehne+Nagel is to sell a major part of its UK contract logistics portfolio to XPO Logistics.
The transaction includes the drinks logistics, food services and retail and technology businesses. These operations generated a turnover of approximately £616m in 2019.
Detlef Trefzger, chief executive, Kuehne+Nagel International, said:“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.”
Kuehne+Nagel will continued to operate in the UK including contract logistics. In particular, the company retains the industry verticals aerospace, government and pharma. These are among the group’s scalable leverage areas, it says.
Financial details have not been disclosed and the transaction is subject to closing conditions including merger clearance by the competent competition authorities. The transaction is expected to close in the second half of the year.
