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Schenker expands UK network with Redhead acquisition

Schenker expands UK network with Redhead acquisition

As part of its 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% of the UK company in early 2016. A takeover of the remaining 25% share is foreseen, contractual 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.

Ewald Kaiser, the board member for Land Transport of Schenker AG, said: "This acquisition underscores our strategy to strengthen and grow our pan-European network. It improves our access to the UK market and the combined resources will facilitate our strategic growth aims."

The new land transport organisation will utilise more than 300 vehicles and will operate from five regional depots, strategically placed offices and partner relationships across the UK.

Redhead is also a member of the national pallet network Palletforce, with more than 100 depots throughout the UK.

Tony Suggitt, MD of Redhead International, said: “The new venture brings the best of both companies together and will further strengthen the infrastructure of our UK and European network.”

The takeover is still subject to approval by the competent authorities (e.g. antitrust authorities).

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