Thursday, May 13, 2021

Major European Freight Forwarder Acquires Asian Logistics Corporation

Final Details of Deal Approved
Shipping News Feature

EUROPE – ASIA – The deal set up in February which saw Swiss group Kuehne+Nagel acquire the assets of the Chinese headquartered Apex International Corporation has been finalised after all closing conditions, including the receipt of unconditional regulatory approvals from the competent authorities, were satisfied.

The acquisition sees K+N take an even stronger position in the world of logistics with Apex having numerous locations including 14 in China and 7 in the US. The organisation is particularly strong on the transpacific and intra-Asia trade routes, generating turnover of CHF 2.2 billion, gross profit of CHF 296 million and earnings before taxes of CHF 126 million in 2020 and ranking seventh in terms of global air freight forwarding volume.

The management team of Apex will continue to run the company, supported by the global network, capabilities and solutions of the Kuehne+Nagel Group and the economic benefits of the Apex business have been effectively transferred to Kuehne+Nagel with effect from January 1, 2021 as per the terms of the transaction agreement. However, the Apex result will be fully consolidated in Kuehne+Nagel's financial statements from the closing date of the transaction. Dr. Joerg Wolle, Chairman of Kuehne + Nagel International AG, commented:

"With the acquisition of Apex, Kuehne+Nagel complements its successful organic growth strategy and substantiates its strong position as one of the world's largest logistics providers. With this transaction we are expanding the Group's service offering, networks and potential for growth, in Asia and globally."

The deal sees Kuehne+Nagel acquire the majority of the shares in Apex and a minority participation remaining with the Apex management, with the parties retaining customary contractual rights to acquire and sell these shares. The purchase price paid at closing amounts to CHF 1.1 billion and has been financed by the Group's own funds and approximately 750,000 new Kuehne+Nagel shares issued out of authorised share capital. In addition, over the next three years, Kuehne+Nagel will have the opportunity to acquire all other shares in Apex for a performance-based consideration.