K + N closes ReTrans acquisition

Third partly logistics provider Kuehne + Nagel Group’s purchase of 100 percent of the multimodal transportation management solutions provider is valued at an estimated $180 million to $200 million, according to Stifel.    Third partly logistics provider Kuehne + Nagel Group said Tuesday it has completed an agreement with Memphis, Tenn.-based ReTrans Inc. to acquire 100 percent of the intermodal and truck brokerage’s shares.
   Financial terms of the deal, initially announced in June, were not disclosed, but the transportation and logistics group of the investment bank Stifel said in an advisory note it estimates the transaction to be valued at $180 million to $200 million. That valuation amounts to roughly 10 to 11 times disclosed EBITDA of $18 million, and is in line with recent, similarly-sized transactions in the space, according to Stifel. The transaction will still be subject to relevant regulatory approval in the U.S.
   Swiss-based K + N said in a statement the ReTrans acquisition is designed to build on the 3PL’s overland growth strategy and strengthen its position as an end-to-end logistics provider in North America in North America.
   “The ReTrans business model is entirely complementary to that of Kuehne + Nagel with its range of domestic transportation solutions, including a proven Intermodal offering,” it said. “As one of the leading nationwide Intermodal Marketing Companies (IMCs), ReTrans provides Kuehne + Nagel with direct access to the Railroads.”
   “We are excited at the prospects of integrating ReTrans into our North America region (Canada, USA and Mexico),” added K + N, North America President & CEO John Hextall. “The capabilities and service offerings of ReTrans will complement our existing business portfolio in Seafreight, Airfreight, Contract Logistics and Overland. Our customers will enjoy a broader range of domestic services to enable end-to-end transportation and supply chain solutions. The excellent cultural fit between the two organizations will help to facilitate the growth we envisage.”
   David Wedaman, CEO of ReTrans, Inc., said of the deal, “ReTrans will join a larger family at Kuehne + Nagel and its customers will definitely benefit from the strength and depth of the global network and forwarding and logistics capabilities. ReTrans is an organization that has built its exceptional reputation on tailoring solutions for our customers, and providing a very high level of service to them. We will now have many more solutions to offer our customers.”