Hill Dickinson, leading UK law firm with offices in the North West and London, has advised global logistics business Kuehne + Nagel Logistics Limited (“Kuehne + Nagel”) on a joint venture with Scottish & Newcastle UK Limited (“S&N UK”). The joint venture constitutes one of the largest logistics contracts in the UK.
A team of 22 lawyers advised on multiple aspects of the transaction including commercial, corporate finance, banking, property, employment and pensions. Glyn Dale-Jones, head of company and commercial at Hill Dickinson, led the team and was supported principally by partners Stephen Lansdown (commercial), Mike Jones (corporate finance), David Swaffield (commercial property) and Rob Coward (employment).
The joint venture will involve Kuehne + Nagel contracting to provide all S&N UK’s primary (bulk movements from production sites to warehouses & multiple retail customers) and secondary (delivery from warehouses and regional depots to pubs and licensed premises) distribution activities for an initial contract period of ten years.
To fulfil this contract, Kuehne + Nagel’s new division, KN Drinks Logistics, will specialise in the primary and secondary distribution of beverages throughout the UK, using the existing network facilities of both Kuehne + Nagel UK and S&N UK.
At the same time, the joint venture will give KN Drinks Logistics the opportunity to specialise in the distribution of beverages, and to develop an industry platform for all drinks suppliers and retailers in the UK.
Kuehne + Nagel has provided S&N UK with primary distribution
and warehouse operations services, including five major regional
distribution centres at strategic sites across the UK, since
1991. KN Drinks Logistics will absorb the existing Kuehne +
Nagel contracts with S&N UK, and will take over responsibility
for secondary distribution activity.
All staff employed in the primary operations which Kuehne + Nagel
currently carries out for S&N UK, and all current S&N UK
secondary distribution staff will transfer under TUPE into KN
Drinks Logistics. The combined business will have nationwide
coverage through 22 depots, with around 850 vehicles and 2,900
people.
On exchanging contracts, Glyn Dale-Jones comments: "This is one
of the largest commercial transactions which Hill Dickinson has
worked on and is testimony to our rating as leading legal advisors
in the commercial and corporate arena in the North West, and
nationally. It was a significant and complex deal that
required a high level of input and advice from all
parties. The outcome will be a joint venture with excellent
prospects."
The joint venture is the latest in a string of major commercial
transactions that Hill Dickinson has been involved in, including
the £100 million disposal for FLSmidth & Co. A/S of FLS
Aerospace and the disposal of NorseMerchant Group and its
subsidiaries to Dutch ferry group Norfolkline.
