Bremen, Germany-based international third-party logistics (3PL) providers supplier Kuehne+Nagel (Okay+N) mentioned this week it has entered right into a binding settlement to amass Shanghai, China-based freight forwarder Apex Worldwide Company, in what it mentioned is the most important acquisition within the firm’s historical past.
Monetary phrases weren’t disclosed. Okay+N officers mentioned that this acquisition is topic to customary closing circumstances.
Established in 2001, Apex has a significant presence as one of many main freight forwarders in Asia, with a significant focus within the Transpacific and intra-Asia areas. The corporate has roughly 1,600 workers and generates annual revenues topping $2.1 billion Swiss francs, or $2.34 billion USD, based on Okay+N. And in 2020, Apex dealt with complete air freight quantity of round 750,000 tons and 190,000 TEU (Twenty-Foot Equal Models) in sea freight quantity.
“The mixture of Apex and Kuehne+Nagel offers us with a possibility to supply our clients a compelling proposition within the aggressive Asian logistics trade, particularly in e-commerce fulfilment, hi-tech and e-mobility,” mentioned Dr. Detlef Trefzger, CEO of Kuehne + Nagel Worldwide AG, in a press release. “We’re trying ahead to welcoming the Apex colleagues to the Kuehne+Nagel household.”
And Apex Chairman of the Board of Administrators and CEO Tony Tune added that with Apex becoming a member of Okay+N, this transaction will add worth to the corporate’s clients’ provide chains and in addition broaden its international logistics community.
A Reuters report famous that this transaction comes amid consolidation within the sector in Asia, particularly China, sparked by an e-commerce increase throughout the COVID-19 pandemic. It additionally famous that Apex stays targeted predominantly on the Asian nation, giving Kuehne & Nagel the native relationships it has sought there.
Ben Gordon, Managing Companion of Cambridge Capital, an investor in area of interest provide chain leaders and in addition Managing Companion of BGSA Holdings, a number one mergers and acquisitions advisory agency targeted on the transportation, logistics, and provide chain know-how sectors, noticed that Okay+N has an extended historical past of profitable acquisitions, noting that 20 years in the past, Okay+N purchased USCO Logistics in what was the most important deal they’d achieved on the time.
“That deal was for $400M,” mentioned Gordon. “Apex is a a lot bigger deal, and at $1.5 billion, represents the most important acquisition Okay+N has ever achieved to this point. It allows Okay+N to broaden in Asia, which is able to improve from 10% to 18% of its income. As well as, it indicators the rising consolidation in international logistics.”
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Jeff Berman is Group Information Editor for Logistics Administration, Fashionable Supplies Dealing with, and Provide Chain Administration Overview. Jeff works and lives in Cape Elizabeth, Maine, the place he covers all features of the availability chain, logistics, freight transportation, and supplies dealing with sectors each day. Contact Jeff Berman