Kuehne and Nagel (K&N) has announced that it has entered into a definitive agreement to sell a major part of its UK contract logistics portfolio to XPO Logistics.
According to the company, the scope of the transaction includes the drinks logistics, food services and retail and technology businesses.
These operations generated a turnover of approximately CHF750m in 2019 and are supported by 7,500 employees.
'One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions,' said Dr Detlef Trefzger, CEO of Kuehne and Nagel International. 'We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK. With XPO Logistics, we are pleased to have found a good new home for our customers and employees.'
K&N said that it remained highly committed to excellent customer solutions and service in the UK across all business units, including contract logistics.
Both parties have agreed not to disclose financial details, and the transaction is subject to customary closing conditions including merger clearance by the competent competition authorities.
The transaction is expected to close in the second half of the year.