Acquisition of Apex completed after satisfying all closing conditions
Significant fulfillment of Kuehne+Nagel’s strategic ambitions in Asia
Compelling value proposition for Asian customers particularly in e-commerce fulfillment, hi-tech and e-mobility
Leading logistics company Kuehne+Nagel announced it has completed the acquisition of Apex International Corporation after satisfying all closing conditions, including receiving unconditional regulatory approvals from the competent authorities.
The purchase price paid at closing amounted to CHF1.1 billion (US$1.2 billion), Swiss-based Kuehne+Nagel said in a release dated May 12.
Last February, Kuehne+Nagel announced it had entered into a binding agreement to acquire Apex, the acquisition representing the largest in the company’s history, in a further step to fulfill its strategic Asian ambitions.
Apex is one of Asia’s leading freight forwarders, especially on the trans-Pacific and intra-Asia trade routes. It was founded in China in 2001 and has expanded throughout Asia and beyond over the years of its growth history.
In 2020, Apex generated turnover of CHF2.2 billion, gross profit of CHF296 million, and earnings before taxes of CHF126 million. It also ranked seventh in terms of global air freight forwarding volume.
In the first quarter of 2021, Apex has continued to perform strongly with turnover of CHF556 million, gross profit of CH109 million and earnings before taxes of CHF64 million.
“Together, Kuehne+Nagel and Apex offer their customers a compelling value proposition in the competitive Asian logistics industry, especially in e-commerce fulfilment, hi-tech and e-mobility,” said the statement.
Joerg Wolle, chairman of Kuehne+Nagel International AG, said that with the acquisition, “we are expanding the group’s service offering, networks and potential for growth, in Asia and globally.”
The purchase price paid at closing amounts to CHF1.1 billion and has been financed by the group’s own funds and about 750,000 new Kuehne+Nagel shares issued out of authorized share capital.
Kuehne+Nagel has acquired the majority of the shares in Apex. Over the next three years, it will have the opportunity to acquire all other shares in Apex for a performance-based consideration.
The Apex management team will continue to run the company, supported by the Kuehne+Nagel group.
The economic benefits of the Apex business have been effectively transferred to Kuehne+Nagel with effect from January 1, 2021. However, the Apex result will be fully consolidated into Kuehne+Nagel’s financial statements from the closing date of this transaction, said the release.
Photo from Kuehne+Nagel