Kuehne+Nagel to acquire City Zone Express for $50mn
With 260 vehicles & 80,000sqm of warehousing space, City Zone Express offers reliable cross-border logistics services
Photo Credit: Kuehne+Nagel
Kuehne+Nagel has signed an agreement to acquire City Zone Express, a subsidiary of Chasen Holdings, a Singapore Exchange Mainboard-listed company.
Headquartered in Malaysia and established in 2006, City Zone Express has over 500 employees and operates in Malaysia, Singapore, Vietnam, Thailand, and China, says a release from Kuehne+Nagel. "The acquisition of City Zone Express will be immediately earnings-accretive and strategically enhance Kuehne+Nagel’s cross-border road logistics service offerings in Asia."
In a stock exchange filing, Chasen Holdings reported that the deal has been signed with Kuehne+Nagel for S$67.4 million ($50 million). "The net amount expected to be received by the company, excluding certain minority interests, will be approximately S$57.7 million subject to adjustments."
With an own fleet of 260 vehicles and 80,000sqm of warehousing space, City Zone Express offers reliable cross-border logistics services spanning the entirety of Southeast Asia up to China, the release added. "When combined with Kuehne+Nagel’s own network, logistics expertise and its eTrucknow visibility platform, customers from booming local industries like e-commerce and high-tech will benefit from a highly dependable extended offering."
Hansjörg Rodi, Member responsible for road logistics, Management Board, Kuehne+Nagel says: “Asia’s economies are an attractive area for us to develop our road logistics services in line with our Roadmap 2026. With City Zone Express, we acquire a reputable regional player whose network and capabilities ideally complement our own. It enables us to better support our customers with tailored road logistics solutions in complex cross-border environments.”
S. Pirithivaraj, Founder, City Zone Express adds: “We are thrilled and privileged to become a member of the Kuehne+Nagel Group, an industry leader in air and sea freight, and a renowned player in road freight. With our combined footprint in road logistics, we can better meet the growing demand for road logistics services in Southeast Asia – a region that is known as an important manufacturing hub for critical industries like high-tech, semiconductors and e-commerce.”
The acquisition is subject to approval from applicable regulatory authorities and Chasen Holdings’ shareholders, the release added.
