Kuehne+Nagel International AG, a Germany based transport and logistics company has further strengthened its foothold in Asia with the purchase of freight forwarder Apex International Corporation.
The acquisition which is being described as the largest in the swiss company’s history is valued at $1.5bn, sources close to the matter informed.
Founded in China in 2001, Apex has expanded across Asia, making it an increasingly attractive takeover target. Earlier in 2015, the majority of its stock was acquired by Asian private equity house MBK Partners.
The company has around 1,600 employees and generates yearly turnover of over Sfr2.1bn ($2.3bn). Last year, it handled approximately 750,000 tons of air freight and 190,000 teu of ocean shipments.
The combination of Apex and Kuehne+Nagel provides us with an opportunity to offer our customers a compelling proposition in the competitive Asian logistics industry, especially in e-commerce fulfilment, hi-tech and e-mobility.”~ Detlef Trefzger, chief executive, Kuehne+Nagel
We are sure that with this transaction, we will be able to add value for our customers’ supply chains and expand our global logistics network. We will complement Kuehne+Nagel’s global air logistics team while offering our management and key talents unique career opportunities.”~ Tony Song, Chairman and CEO, Apex International Corporation
As per reports, the takeover would increase Kuehne+Nagel’s Asian exposure from 10% to about 18% of revenues and will provide a compelling proposition in logistics in Asia, focusing on e-commerce fulfilment, hi-tech and e-mobility.
The acquisition is subject to customary closing conditions, including merger clearance by the competent competition authorities.
K+N said the deal would be financed by “available liquid sources and, if needed, by available credit lines”. It added that once completed, “a minor stake of Apex shares is to remain with the experienced and entrepreneurial management of Apex”.