Earlier today, Greenwich, Conn.-based XPO Logistics, a provider of global freight transportation and logistics services, said that its acquisition of the majority of Kuehne + Nagel’s contract logistics operations in the UK and Ireland, which was initially announced in March 2020, is a done deal.
Financial terms of the deal were not disclosed.
When the acquisition was first announced last March, XPO said that Kuehne + Nagel’s U.K. contract logistics operations are comprised of various services, including: inbound and outbound distribution; reverse logistics management, and inventory management. For 2019, Kuehne + Nagel’s U.K. contract logistics operations took in around $500 million (EUR) from the beverage, technology and e-commerce, and food service verticals.
And XPO also noted that this acquisition will expand XPO’s contract logistics offering in the UK with complementary expertise, 75 facilities and a blue-chip customer base, with XPO integrating the acquired operations on its technology platform to optimize synergies within its pan-European network.
XPO said today that this deal expands XPO’s contract logistics network in the UK and Ireland to 248 locations and approximately 26,000 employees. And it added that the acquired operations provide various logistics services, including inbound and outbound distribution, reverse logistics management and inventory management, primarily in the beverage, technology and e-commerce, and food service verticals.
“We’re pleased to complete the Kuehne + Nagel acquisition and welcome these prestigious new customers and talented colleagues to XPO,” said Malcolm Wilson, XPO Logistics chief executive officer for Europe, in a statement. “We look forward to the new opportunities that have been created by the combined resources of our larger organization.”
Should this spin-off come to fruition, the logistics group would be split into two separate publicly-traded companies on the New York Stock Exchange: XPORemainCo, a global provider of less-than-truckload (LTL) and truck brokerage transportation services; and NewCo, which would become the second-largest global contract logistics provider, with around 200 million square feet of warehouse space.
XPO said it expects this transaction to be completed in the second half of 2021, with the deal subject to various conditions, with the caveat that there can be no assurance that a separation transaction will occur or, if one does occur, of its terms or timing.
“By uncoupling our transportation and logistics segments, we intend to create two high-performing, pure-play companies to serve the best interests of all our stakeholders,” said Brad Jacobs, chairman and chief executive officer of XPO Logistics, in a statement. “Both businesses will have greater flexibility to tailor strategic decision-making and capital allocations to their end-markets, with the benefit of strong positioning as customer-focused innovators. We currently believe that this spin-off is the most effective way to unlock significant value for our customers, employees and shareholders.”
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Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman