Bremen, Germany-based global third-party logistics service provider (3PL) Kuehne + Nagel (K + N) said this week it has reached a binding agreement to acquire Shanghai, China’s freight forwarder Apex International Corporation in this week. which he said is the biggest acquisition in the company’s history.
Financial terms were not disclosed. K + N officials said this acquisition is subject to customary closing conditions.
Founded in 2001, Apex is one of the leading freight forwarders in Asia, with a major focus in the Trans-Pacific and Intra-Asian regions. The company has around 1,600 employees and generates annual revenues in excess of 2.1 billion Swiss francs, or US $ 2.34 billion, according to K + N. And in 2020, Apex handled a total air cargo volume of approximately 750,000 tonnes and 190,000 TEUs (twenty foot equivalent units) in ocean freight volume.
“The combination of Apex and Kuehne + Nagel provides us with the opportunity to offer our clients a compelling proposition in the competitive Asian logistics industry, especially in the areas of e-commerce execution, high technology and electric mobility, ”said Dr Detlef Trefzger, CEO of Kuehne + Nagel International AG, in a statement. “We look forward to welcoming Apex colleagues to the Kuehne + Nagel family. “
And Apex Chairman and CEO Tony Song added that with Apex joining K + N, this transaction will add value to the supply chains of the company’s customers and also expand its logistics network. global.
A Reuters report noted that the transaction comes against a backdrop of industry consolidation in Asia, particularly China, triggered by an e-commerce boom during the COVID-19 pandemic. He also noted that Apex remains focused primarily on the Asian nation, giving Kuehne & Nagel the local connections he sought there.
Ben gordon, Managing Partner of Capital of Cambridge, an investor in niche supply chain leaders, and also Managing Partner of BGSA Holdings, a mergers and acquisitions advisory firm specializing in the transportation, logistics and supply chain technology industries, observed that K + N has a long history of successful acquisitions, noting that there At 20, K + N bought USCO Logistics in what was the biggest deal they had done at the time.
“This deal was for $ 400 million,” Gordon said. “Apex is a much larger transaction and, at $ 1.5 billion, represents the largest acquisition K + N has ever made to date. It enables K + N to develop in Asia, which will increase from 10% to 18% of its turnover. In addition, it signals the growing consolidation of global logistics.
About the Author
Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics management, Modern material handling, and Supply chain management review. Jeff works and lives in Cape Elizabeth, Maine where he covers all aspects of the supply chain, logistics, freight transportation and material handling industries on a daily basis. Contact Jeff Berman