Kuehne + Nagel to sell a major part of its UK contract logistics portfolio to XPO Logistics under a definitive agreement. The scope of the transaction includes the drinks logistics, food services and retail & technology businesses. These operations generated a turnover of approximately CHF 750 million (approximately 809 million USD) in 2019 and are supported by 7,500 employees.
Both parties have agreed not to disclose financial details. The transaction is subject to customary closing conditions including merger clearance by the competent competition authorities. The transaction is expected to close in the second half of the year.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, commented: "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."