Kuehne+Nagel has completed its acquisition of Apex International Corporation, one of the largest Asia-based freight forwarders — in a CHF1.1 billion (US$1.21 billion) deal that would expand its Asia Pacific operation and position it as the world’s largest airfreight forwarder.

Earlier, the Germany-headquartered firm said the deal with Apex will enable Kuehne+Nagel to more value-proposition in the competitive Asian logistics industry, especially in e-commerce fulfillment, hi-tech and e-mobility. 

"Kuehne+Nagel has completed the acquisition of Apex International Corporation (Apex), following the satisfaction of all closing conditions, including the receipt of unconditional regulatory approvals from the competent authorities," the company announced on May 12.

It noted that Apex is one of Asia’s leading freight forwarders, especially on the transpacific and intra-Asia trade routes, and in 2020, the company generated a turnover of CHF 2.2 billion, gross profit of CHF 296 million, and earnings before taxes of CHF 126 million. It also ranked seventh in terms of global air freight forwarding volume.

Kuehne+Nagel noted that in the first quarter of 2021, Apex has continued to perform strongly with a turnover of CHF 556 million, gross profit of CHF 109 million, and earnings before tax of CHF 64 million.

"With the acquisition of Apex, Kuehne+Nagel complements its successful organic growth strategy and substantiates its strong position as one of the world’s largest logistics providers. With this transaction, we are expanding the Group’s service offering, networks, and potential for growth, in Asia and globally," said Dr. Joerg Wolle, Chairman of Kuehne + Nagel International AG.

The firm noted that Kuehne+Nagel has acquired the majority of the shares in Apex but a "minority participation" remains with the Apex management, with the parties retaining customary contractual rights to acquire and sell these shares.

CHF 1.1 billion purchase price

"The purchase price paid at closing amounts to CHF 1.1 billion and has been financed by the Group’s own funds and approximately 750,000 new Kuehne+Nagel shares issued out of authorized share capital," Kuehne+Nagel said.

"Over the next three years, Kuehne+Nagel will have the opportunity to acquire

all other shares in Apex for a performance-based consideration," it added.

The German firm noted that the management team of Apex will continue to run the company, supported by the global network, capabilities, and solutions of the Kuehne+Nagel Group.

Kuehne+Nagel said the economic benefits of the Apex business have been effectively transferred to the company with effect from January 1, 2021, as per the terms of the transaction agreement.

However, the Apex result will be fully consolidated in Kuehne+Nagel’s financial statements from the closing date of this transaction.