Livingstone has advised Cretschmar Group on the divestment of its Dusseldorf-based transport business and related real estate to Rhenus Freight
Livingstone has advised L.W. Cretschmar GmbH & Co. KG and its shareholders on the announced divestiture of its freight-forwarding transport business and its associated property at the location in Düsseldorf to Rhenus Freight. The transaction is subject to antitrust approval.
Rhenus Freight plans to take over the freight-forwarding business and property of L.W. Cretschmar on June 1, 2020. The takeover package includes customer and business relations as well as employees working in the freight-forwarding, customs, and sales departments. The acquisition still has to be approved by the cartel authorities.
The Rhenus Group aims to strengthen its market position in the Rhine/Ruhr region and guarantee stable operations in its current network structure with this transaction.
“In taking over the freight-forwarding activities of the Cretschmar Group in Düsseldorf, we expand our market presence in the region as well as our range of services for our customers. This acquisition further strengthens our chemical expertise, a service we will combine in June,” says Thilo Streck, Managing Director of Rhenus Road in Germany.
The long-standing Cretschmar family business generated EUR 103 million (USD 111m) in 2018. Cretschmar is part of the System Alliance, Night Star Express, and Kombiverkehr cooperation schemes. “We need to safeguard reliable supplies for the major mid-sized cooperation schemes in the region in the long term,” Thilo Streck added.
The Cretschmar Group will maintain its freight-forwarding activities in Neuss, Leipzig, and Stuttgart and continue to operate in the third-party logistics, night express, trade fair logistics, air, and sea freight areas – at its business site in Düsseldorf.
“Our decision to sell is the result of the ongoing process of consolidation in the freight-forwarding market. We’re delighted to have found a purchaser in the Rhenus Group, which can offer our transferred employees good prospects”, says Kay A. Espey, the Managing Partner of L.W. Cretschmar GmbH & Co. KG. “We want to focus even more strongly on expanding our other corporate activities, in particular third-party logistics, after the sale of our freight-forwarding activities in Düsseldorf.”
The Rhenus Group is one of the leading logistics specialists with global operations and generates EUR 5.5 billion (USD 5.9bn), employing 33,000 staff across 750 business sites. The Rhenus Group provides solutions for a wide variety of different sectors along the complete supply chain; they include multimodal transport operations, warehousing, customs clearance as well as innovative value-added services.
The Cretschmar Group is an owner-managed freight forwarding and logistics group with international operations, an extensive range of services, and six subsidiaries in all with business sites in Düsseldorf, Neuss, Leipzig und Stuttgart. It employs about 480 workers. Founded in Düsseldorf in 1836, the company now provides break bulk general cargo operations, part and complete loads, third-party logistics, night express services, trade fair logistics, air, and sea freight as well as customs services. It caters to the specific needs of the chemical sector.
“I would like to thank our M&A advisors, Dr. Nowak, and Mr. Dorsemagen, for providing us with a very high level of personal commitment and professionalism. Livingstone has complemented our entire team of advisors very well and efficiently,” said Kay A. Espey.
“We are delighted to have helped Cretschmar find the right partner in Rhenus Freight and to facilitate the transaction,” added Dr. Ralf Nowak, partner at Livingstone in Düsseldorf.
Key Transaction Team
Dr. Ralf NowakPartner
Philip DorsemagenAssociate Partner