XPO Logistics buys K+N UK contract logistics business

XPO Logistics is to acquire the Kuehne + Nagel UK drinks logistics, food services and retail and technology businesses.

These lines of businesses generated K+N £615.2 billion in 2019 and employs around 7,500 staff across the country.

After the sale, K+N is to retain its aerospace, government and pharmaceutics businesses here, which are some of the company’s scalable leverage areas.

Dr. Detlef Trefzger, chief executive of K+N, said: “One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions.

“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.”

No financial details of the sale have been published. It is subject to clearance from competition authorities and is to close in H2 of 2020.

In January XPO Logistics had said it was reviewing “strategic alternatives” which include the possible sale or spin-off of one or more of its business units.