Kuehne & Nagel buys Asian logistics firm Apex International (updated)

CDL Investments New Zealand

22/02/2021 06:47

(Adds deal value and other details)
    By Silke Koltrowitz and Kane Wu
    ZURICH, Feb 22 (Reuters) - Swiss logistics firm Kuehne &
Nagel  KNIN.S  said on Monday it would buy Asian logistics
provider Apex International Corp from South Korea-based private
equity company MBK Partners in the largest acquisition in its
history.
    A person with direct knowledge of the transaction said the
deal would give Apex an enterprise value of between $1.5 billion
to $2 billion, adding the deal was expected to close in April
after obtaining regulatory approvals.
    The two firms, which did not disclose financial details of
the transaction, declined to comment on the amount. The person
declined to be identified due to confidentiality constraints.
    With approximately 1,600 employees, Apex generates annual
turnover of more than 2.1 billion Swiss francs ($2.34 billion)
and is one of Asia's leading air freight forwarders, Kuehne &
Nagel said in a statement.
    The company said the deal would allow it to offer customers
better services in the competitive Asian logistics industry,
especially in e-commerce fulfilment, high-tech and e-mobility.
    The acquisition will be financed by available liquid sources
and, if needed, by available credit lines, Kuehne & Nagel said,
adding a minor stake of Apex shares was to remain with the
management of Apex which will continue to operate separately
within the Kuehne & Nagel group.
    The transaction is subject to customary closing conditions,
Kuehne & Nagel said.
    Apex, which also offers ocean freight - specialising in
trans-Pacific routes - as well as trucking and warehousing
services, was bought by MBK Partners in 2015.
    Since then, the company has made a number of synergistic
add-on acquisitions and strengthened capabilities in
cross-border e-commerce logistics, MBK said in a separate
statement.   
    
($1 = 0.8980 Swiss francs)

 (Reporting by Silke Koltrowitz in ZURICH and Kane Wu in HONG
KONG; Editing by Kim Coghill and Subhranshu Sahu)
 ((silke.koltrowitz@thomsonreuters.com; +41 41 528 3638;))