DB Schenker Logistics to Expand Land Network in UK
As part of the continual development of its land network, DB Schenker Logistics will combine its road-activities in the UK in a joint venture with UK logistics company Redhead International.
Schenker AG will acquire a 75 percent of the UK company early 2016. A takeover of the remaining 25 percent share is foreseen under the contract after four years. The two businesses will be merged in a reverse integration and will trade as Redhead International which will continue to be developed by the experienced management team.
“This acquisition underscores our strategy to strengthen and grow our pan-European network,” said Ewald Kaiser, the board member for land transport of Schenker AG. “It improves our access to the UK market and the combined resources will facilitate our strategic growth aims.”
The new land transport organization, utilizing more than 300 vehicles, will operate from five regional depots, strategically placed offices and partner relationships across the UK.
Redhead is also a member of the leading national pallet network, Palletforce with more than 100 depots throughout the UK.
“The new venture brings the best of both companies together and will further strengthen the infrastructure of our UK and European network,” said Tony Suggitt, managing director of Redhead International.
The takeover is subject to approval by the relevant authorities.