EUROPEAN logistics business Kuehne + Nagel has announced it has entered into “a definitive agreement” to sell a major part of its UK contract logistics portfolio to XPO Logistics.
The scope of the transaction includes the drinks logistics, food services and retail and technology businesses.
These operations generated a turnover of about 750m Swiss francs in 2019 and are backed by 7500 employees.
Chief executive Dr Detlef Trefzger indicated the deal was part of a review of their operations.
“One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions,” Dr Trefzger said.
“We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK,” he said.
“With XPO Logistics, we are pleased to have found a good new home for our customers and employees.”
In a statement, Kuehne + Nagel said it remained “highly committed” to excellent customer solutions and service in the UK.
Both parties agreed not to disclose financial details of the arrangement.
The transaction is subject to customary closing conditions including merger clearance by competition authorities.