XPO Logistics is acquiring part of the UK business of Swiss logistics company Kuehne + Nagel.
The businesses, which had a collective turnover of around CHF 750 million (£615 million) in 2019, include drinks, food, retail and technology businesses.
The businesses offer logistics services including inbound and outbound distribution, reverse logistics management and inventory management.
XPO will be able to make use of the businesses’ expertise, 75 facilities and customer base. It will integrate the new acquisition onto its technology platform.
The companies did not disclose financial details of the transaction, which is expected to close in the second half of the year, subject to merger clearance.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, comments: “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.”