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DB Schenker buys Redhead International

German rail and logistics giant DB Schenker Logistics has bought Redhead International.

The buyout, for an undisclosed sum, expands DB Schenker’s land transport operations in the UK.

It will, however, see the DB Schenker Logistics name replaced by the Redhead International banner in the UK as part of a reverse integration, with Redhead’s management team leading the enlarged business.

Parent group Schenker AG, the logistics arm of Deutsche Bahn, expects to complete the acquisition of 75% of Redhead International early next year, with plans to own the company entirely by the end of 2020.

AG Schenker said the combined business will operate more than 300 vehicles via five regional depots, strategically placed offices and partner relationships across the UK.

Depot closures are possible, as DB Schenker Logistics UK currently operates 14 depots employing 750 people, while Redhead International has seven depots in England and Ireland.

Redhead declined to comment on the point.

Redhead International employs more than 200 staff. The company handles more than 20,000 consignments every month, running scheduled services to over 40 European and North African countries. It has an annual turnover of more than £32m.

Schenker AG land transport board member Ewald Kaiser said: “This acquisition underscores our strategy to strengthen our pan-European network. It improves our access to the UK market and the combined resources will facilitate our strategic growth aims.”

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

Original content: Commercial Motor