Kuehne+Nagel (K+N) has agreed to sell to global private equity firm, Partners Group, a 24.9% equity stake in its newly-acquired freight forwarder, Apex International Corporation.

In a statement, K+N said following the transaction, Partners Group will join majority shareholder Kuehne+Nagel Group, with a seat on the Apex Board. 

The Shanghai-based Apex is one of Asia's leading freight forwarders, especially on the transpacific and intra-Asia trade routes. The firm generated a turnover of CHF 2.2 billion (US$2.4 billion), gross profit of CHF 296 million (US$321 million) and earnings before taxes of CHF 126 million (US$137 million) and ranked seventh in terms of global air freight forwarding volume. 

"On behalf of Kuehne+Nagel as well as Apex’s CEO Tony Song and his management team, we welcome the addition of Partners Group as a shareholder. By combining the financial and strategic expertise of Partners Group with the industry heritage and experience of Kuehne+Nagel, Apex will have access to a powerful partnership through which to consolidate our position in China and further develop the Company," said Yngve Ruud, executive vice president Air Logistics, Kuehne+Nagel International AG, Chairman of Apex.

Dr. Marcel Erni, Co-Founder, Member of the Board of Directors, Partners Group, for his part commented: "Apex is a leading player in the China cross-border freight forwarding market, with a growing international presence and significant potential for further expansion. We have long admired the Company and its management team and are excited to be able to contribute to its future growth." 

E-commerce growth cited

Joerg Wolle, Chairman of the Board, Kuehne + Nagel International AG, said Partners Group is an "ideal partner" for K+N, citing its  experience and network and said that the strategic focus on expansion in Asia.

Sheng Liu, managing director, Private Equity, Partners Group, added: "Apex benefits from the rise of cross-border e-commerce – a key transformative trend that has accelerated as a result of the Covid-19 pandemic. We look forward to working with Kuehne+Nagel as well as Tony Song and his management team to realize this potential." 

K+ N noted that the transaction is subject to customary closing conditions, including clearance by the competent merger control authorities. Apex will then continue to operate separately within the Kuehne+Nagel Group.

It also did not disclose any financial details about the transaction.

K+N acquired Apex in February

Kuehne+Nagel earlier acquired Apex in a CHF1.1 billion (US$1.21 billion) deal in a bid to 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 better position K+N in in the competitive Asian logistics industry, especially in e-commerce fulfillment, hi-tech and e-mobility.