Kuehne+Nagel has entered into an agreement to acquire City Zone Express, a subsidiary of Chasen Holdings Ltd., a Singapore Exchange Mainboard-listed company.
Headquartered in Malaysia and established in 2006, City Zone Express has over 500 employees and operates in Malaysia, Singapore, Vietnam, Thailand, and China.
In a statement, Kuehne+Nagel said the acquisition of City Zone Express will be immediately earnings-accretive and strategically enhance Kuehne+Nagel's cross-border road logistics service offerings in Asia.
City Zone Express has its own fleet of 260 vehicles and 80,000 sqm of warehousing space and offers reliable cross-border logistics services spanning the entirety of Southeast Asia up to China.
"When combined with Kuehne+Nagel's own network, logistics expertise, and its eTrucknow visibility platform, customers from booming local industries like e-commerce and high-tech will benefit from a highly dependable extended offering," Kuehne+Nagel said.
Asia economies an "attractive area" for K+N
Hansjörg Rodi, a member of the management board at Kuehne+Nagel International AG, responsible for Road Logistics, noted that Asia's economies are an attractive area for the company to develop its road logistics services in line with our Roadmap 2026.
"With City Zone Express, we acquire a reputable regional player whose network and capabilities ideally complement our own. It enables us to better support our customers with tailored road logistics solutions in complex cross-border environments," Rodi said.
S. Pirithivaraj A/L Selvarajoo, founder of City Zone Express, said the company is thrilled and privileged to become a member of the Kuehne+Nagel Group.
"With our combined footprint in road logistics, we can better meet the growing demand for road logistics services in Southeast Asia — a region that is known as an important manufacturing hub for critical industries like high-tech, semiconductors and e-commerce," the City Zone founder added.
Kuehne+Nagel said completion of the transaction is expected within the coming months.
The acquisition is subject to approval from applicable regulatory authorities and Chasen Holdings' shareholders.
