Kuehne + Nagel's acquisition of RH Freight will create major UK player

Kuehne + Nagel's (K+N) acquisition of RH Freight Group will create the second largest mover of road freight between the UK and continental Europe, according to Jim Hedderwick, K+N senior vice-president of road logistics north-west Europe.

Hedderwick will be MD of the newly merged firm, while former RH Freight MD Ian Baxter will become a non-executive chairman of the UK business. His brother Andrew Baxter remains as deputy MD.

Under the deal, which Roadtransport.com understands was pulled together in a matter of weeks, Nottingham-based RH Freight will retain its branding this year, with rebranding taking place throughout 2012, before complete integration in 2013.

Baxter tells Roadtransport.com: "There couldn't be a better partner for us to do this transaction with.

"Combining our strengths and international capabilities with K+N will be of great advantage to our customers and generate a win-win situation for both companies and their employees."

The deal, which involves K+N entering into an agreement to acquire the shares of Rennies Investment Ltd, the parent company of RH Freight, is still subject to approval by anti-trust authorities.

When, and if, approved, the combined businesses will employ some 7,661 people and operate a fleet of 1,675 vehicles and 2,500 trailers in the UK.

"We needed to grow our UK presence [in road freight], and this makes us a major player," says Hedderwick.

RH Freight runs groupage freight services between continental Europe and the UK, employing 630 staff at 17 UK locations and two sites in Finland.

It handles some 425,000 shipments a year, running to 32 European destinations daily, and manages 30,000m2 of warehousing space.

"Due to its customer orientation, expertise and concentration on daily lines to European destinations, RH Freight fits ideally into K+N's strategy to expand its European overland network and to offer its customers high-quality overland products," says Dirk Reich, K+N executive vice-president.

Hedderwick adds: "We can now look at our air freight, sea freight, and contract logistics position as there are opportunities to cross-sell and generate volume."