USCO Logistics announced today that it has signed an agreement to be acquired by Kuehne & Nagel International AG, Schindellegi, Switzerland. The transaction will enable USCO customers to access a single source for execution of a full suite of logistics management solutions on a global basis. With this acquisition Kuehne & Nagel will have full access to the logistics market in North America, and realises a further important step in its strategic concept of offering integrated contract logistics solutions on a global basis. In recent years, Kuehne & Nagel has successfully expanded this business in Europe and, as a result of the alliance with SempCorp Logistics Ltd., Singapore, the contract logistics operations were extended to the Asia-Pacific region, making Kuehne & Nagel a truly global contract logistics player.
USCO Logistics is a privately owned leading, non-asset-based North American full-service provider of customized integrated logistics management solutions.
With its 3,300 employees, USCO Logistics manages more than 15 million square feet of shared and dedicated space in distribution centers throughout more than 70 locations in the United States, Canada and Mexico, making it one of the largest warehouse-based logistics service providers in North America. Focusing on the high-tech, retail and pharmaceutical industries, USCO Logistics has achieved annual revenue growth in excess of 30 percent during the last three years.
"The acquisition of USCO Logistics is an important milestone in the further development of the Kuehne & Nagel Group. It enables us to offer one-stop, integrated contract logistics solutions in the triad of Europe, the Asia-Pacific region and North America. In the future, Kuehne & Nagel will be one of the leading suppliers of integrated contract logistics services, worldwide. USCO complements our existing leadership position in the worldwide ocean freight and airfreight forwarding businesses," said Klaus-Michael Kuehne, Executive Chairman of Kuehne & Nagel International AG.
Thomas R. Holmes, Chairman of USCO Logistics, said, "We are extremely excited about being part of the Kuehne & Nagel Group. This transaction will allow us to provide global logistics solutions to our customers while providing complementary logistics capabilities to our new partner, Kuehne & Nagel. USCO's management team will remain in place as part of the terms of the acquisition, assuring stability and continuity of service to USCO customers. The union creates growth opportunities for USCO employees as USCO expands its reach by joining one of the oldest, most respected international freight-forwarding and logistics companies. The opportunities created by our joining forces will create a leading global logistics force."
The agreement is subject to the fulfilment of statutory antitrust and other conditions. The purchase price is approximately $300 million plus an earn-out based on performance. Lazard advised USCO Logistics.
With more than 14,000 employees at 530 locations in 90 countries - before incorporating USCO Logistics - the Kuehne & Nagel Group is one of the leading logistics companies worldwide. Its strong market position lies in the ocean, airfreight and contract logistics businesses, with a clear focus on pro-viding IT-based supply chain management services.
USCO Logistics operates shared and dedicated distribution centers throughout North America. USCO offers a high-tech, non-asset-based transportation management services and also is increasingly a strategic partner in many customers' extended enterprises through its use of information technology-based solutions to drive supply-chain integration.
Source: Kuehne and Nagel