Kuehne+Nagel sells part of its business in the UK to improve profitability
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Kuehne+Nagel will sell a significant part of its contract logistics portfolio in the UK to XPO Logistics. The transaction covers the logistics of beverages, catering services and the retail and technology market and is to be finalised in the second half of this year.
Neither companies has disclosed financial details. According to Kuehne+Nagel, the operations carried out in the segments under sale in 2019 generated a turnover of approximately CHF 750 million, with 7,500 employees involved.
For the sale to formally take place, the consent of the competition authorities is still required.
As to the reasons for divesting parts of the business, Kuehne+Nagel explains them by improving profitability and focusing on major, scalable businesses.
A year ago we announced for the first time a strategic review of our contract logistics. The agreement to sell a significant part of the assets in the UK is a milestone in the restructuring process. We are pleased to announce that thanks to XPO Logistics we have found a good new home for our customers and employees,” comments Dr. Detlef Trefzger, Managing Director of Kuehne+Nagel International AG.
The logistics operator will continue to carry out logistics activities in the UK as part of its support for the aviation and pharmaceutical industries as well as government projects.