Dive Brief:
- Supply chain conglomerate Kuehne+Nagel is slated to acquire a 51% stake in IMC Logistics, part of a push to bolster its growth this decade.
- “Once the transaction is completed, IMC Logistics will continue to operate as it has been previously, but with greater resources to serve clients,” the Tennessee-based marine drayage provider said in a news release last week.
- The deal is slated to close at the beginning of Q1 2025, the companies said. Terms of the deal were not disclosed.
Dive Insight:
Kuehne+Nagel seeks to grow as a trusted, sustainable source for supply chain services as detailed in its four-year Roadmap 2026 plan.
That entails expanding its market footprint and maintaining an asset-light business model, as opposed to heavily investing in transport assets, according to the company.
IMC Logistics, however, dubs itself as the largest marine drayage provider in the U.S., and it had over 1,800 power units as of mid-March, according to a Federal Motor Carrier Safety Administration database. In the same month, IMC also made a deal to acquire American Pacific Transportation and add over 500 trucks in California.
Other deals this year and last by the Switzerland-based air and sea logistics provider, which has over 80,000 employees, included acquiring cross-border logistics and warehouse provider Malaysia-based City Zone Express; Canada-based customs broker Farrow; and South Africa freight forwarder Morgan Cargo.
Stefan Paul, CEO of Kuehne+Nagel International, noted the strategic importance of IMC Logistics, a privately held company.
“International Sea Logistics is a highly complex business with many interfaces and stakeholders, in which US trade flows are of central importance,” he said in a news release on the deal. “IMC’s range of capabilities significantly expands our service offering and allows us to develop and offer even more attractive solutions for the value chains of our ocean freight customers.”
While M&A deals slowed this year, Michigan-based investment bank PMCF noted strategic buyers reduced their dealmaking amid volatile freight pricing, according to a Q1 report. A Q2 report also noted high interest rates as a factor — prior to Federal Reserve scalebacks in September and November.
“Marine transportation companies have experienced a significant boost in stock prices due to strong financial performance and improving global trade conditions,” the bank said in its Q2 report. “This momentum is driven by rising demand for shipping services and ongoing fleet modernization, positioning the industry for continued success.”
