Kuehne + Nagel acquires U.S. intermodal/truck brokerage

The purchase of Memphis-based ReTrans Inc. is intended to expand K+N’s North American network and sync with the third party logistics provider’s ocean and airfreight businesses.    The Kuehne + Nagel Group has entered into an agreement to acquire 100 percent of the shares of ReTrans Inc., a U.S.-based provider of multimodal transportation management solutions.
   The acquisition was undertaken to build on the the Swiss third party logistics provider’s land-based strategy and is designed to strengthen the company’s position as an end-to-end logistics provider in North America.
   Founded in 2002 and headquarted in Memphis, Tenn., ReTrans is a U.S. non-asset brokerage provider of intermodal transportation, as well as full and less-than-truckload services in the United States and Canada. K+N said the company generates around $500 million in annual revenue.
   “The transaction with ReTrans underlines our strategy to grow organically and through complementary acquisitions,” said Detlef Trefzger, chief executive officer of the Kuehne + Nagel Group.
   “By acquiring ReTrans we obtain expertise in intermodal transportation with direct access to the most important North American railroad companies, an innovative LTL brokerage business and a platform to provide managed transportation services,” said Stefan Paul, K+N executive vice president, overland.
   The transaction is subject to approval by the competent U.S. regulatory authorities. While both parties agreed not to disclose the purchase price, the transportation and logistics group of the investment bank Stifel estimates the transaction to be valued at $180 million to $200 million, roughly 10 to 11 times disclosed EBITDA of $18 million, and in line with recent, similarly-sized transactions in the space.
   “Ultimately, we view this as a positive strategic step for K+N, extending its suite of global logistics capabilities by adding to its U.S. domestic capabilities, and helping the company to diversify away from the currently challenged freight forwarding industry,” Stifel wrote in an investor note.
   “The ReTrans deal marks another in a series of significantly sized (mergers and acquisitions) transactions in the global logistics arena, and we expect more deals are forthcoming. This deal also underscores the fact that many international (logistics companies) are taking a hard look at buying into the U.S. domestic distribution market, where growth, as sluggish as it has seemed in the past few months, still trumps that of other major global freight markets.”