• ITVI.USA
    15,746.290
    48.010
    0.3%
  • OTRI.USA
    23.890
    0.480
    2.1%
  • OTVI.USA
    15,748.000
    48.490
    0.3%
  • TLT.USA
    2.810
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.640
    0.250
    7.4%
  • TSTOPVRPM.CHIATL
    2.680
    -0.160
    -5.6%
  • TSTOPVRPM.DALLAX
    1.450
    -0.060
    -4%
  • TSTOPVRPM.LAXDAL
    3.300
    0.010
    0.3%
  • TSTOPVRPM.PHLCHI
    2.020
    0.040
    2%
  • TSTOPVRPM.LAXSEA
    4.030
    0.130
    3.3%
  • WAIT.USA
    132.000
    7.000
    5.6%
  • ITVI.USA
    15,746.290
    48.010
    0.3%
  • OTRI.USA
    23.890
    0.480
    2.1%
  • OTVI.USA
    15,748.000
    48.490
    0.3%
  • TLT.USA
    2.810
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.640
    0.250
    7.4%
  • TSTOPVRPM.CHIATL
    2.680
    -0.160
    -5.6%
  • TSTOPVRPM.DALLAX
    1.450
    -0.060
    -4%
  • TSTOPVRPM.LAXDAL
    3.300
    0.010
    0.3%
  • TSTOPVRPM.PHLCHI
    2.020
    0.040
    2%
  • TSTOPVRPM.LAXSEA
    4.030
    0.130
    3.3%
  • WAIT.USA
    132.000
    7.000
    5.6%
EuropeLogisticsSupply Chains

Kuehne + Nagel closes sale of UK assets to XPO

Deal finally consummated 10 months after first announcement

Swiss transport and logistics giant Kuehne + Nagel International AG (OTC US: KHNGY) said Monday that it closed on the sale of most of its U.K. contract logistics business to U.S.-based provider XPO Logistics Inc. (NASDAQ:XPO), nearly 10 months after the deal was announced.

The transaction, which was consummated after the approval of British antitrust authorities, calls for Kuehne + Nagel to divest itself of logistics operations that supported its food and beverage, retail and technology businesses. Revenue from the divested operations totaled about $656.4 million in 2019, Kuehne + Nagel said at the time the deal was disclosed last March.

The sale, financial terms of which were not disclosed, closes the books on Kuehne + Nagel’s plans that began two years ago to shed non-core contract logistics services. Kuehne + Nagel has already sold its contract logistics business in Argentina, its cool chain fast moving consumer goods portfolio in France and a grouping of real estate assets.

Kuehne + Nagel said it remains committed to e-commerce and pharmaceutical contract logistics services in the U.K. and worldwide.

Though the U.K. business never performed optimally for Kuehne + Nagel, the verticals that XPO has acquired are well within its wheelhouse. It is believed that XPO will get far more mileage out of the assets than did Kuehne + Nagel. XPO said last March that it planned to integrate Kuehne + Nagel’s business onto its technology platform under its pan-European network.

XPO announced in late 2020 plans to separate its transportation and logistics businesses and spin off the logistics operation into a separate company. The initiative is expected to be completed by the end of 2021.

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.

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