Dubai-based ports operator DP World has agreed to absorb the UK grocery distribution assets of US firm GXO Logistics, adding to its investments in Europe.
The deal involves six contract logistics sites – five in England and one in Northern Ireland spanning more than 185,000 square metres – which serve UK retailers such as Asda, Sainsbury’s and the Co-op, DP World said on Thursday.
The sites also supply grocery products to out-of-town supermarkets, branded convenience and neighbourhood stores. Some 46,000 unique products will be stored at the warehouses, the statement said.
DP World did not disclose the value of the agreement.
The assets provide services for grocery-centric products, including ambient, chilled, frozen and bonded storage, growing DP World's grocery logistics portfolio. DP World's perishable items unit handles products such as produce, seafood and meat.
More than 2,000 GXO employees working on the sites will also be folded into DP World's UK operations, which span logistics, freight forwarding, marine services and major container ports at London Gateway and Southampton, it added.
The transfer of the assets is expected to be completed by September, pending approval from British regulators. GXO will retain transport operations at all applicable sites, it said.
“This is an important step in our ambition to build a truly end-to-end logistics offering across the UK and Europe,” said Angela Howard, vice president of DP World's North Europe contract logistics unit.
“It strengthens our presence in key retail and consumer markets, broadens our geographic reach and further enhances our ability to create value for customers.”
DP World continues to aggressively build its assets overseas, with its global network spanning 85 countries and the operation of more than 90 terminals.
The UK deal is its second involving perishables this week. On Wednesday, the company signed an agreement to build a new temperature-controlled logistics centre in the Port of Antwerp, whose long-term investment is expected to hit €100 million ($115.4 million).
“By adding these operations to our network, we are expanding our ability to provide seamless supply chain solutions that connect ports, transport, warehousing and distribution through a single, integrated platform,” Ms Howard said.
