Kühne & Nagel (AG & Co.) KG has entered into an agreement with Hapag-Lloyd AG to purchase the forwarding and logistics company Pracht, based in Haiger / Hesse, effective January 1, 2004. With this acquisition, Kuehne & Nagel strengthens its range of contract logistics services in Germany and expands its presence in a new and attractive regional market.

Pracht, founded in 1857 and, since 1980, a wholly-owned subsidiary of Hapag-Lloyd AG, Hamburg had a turnover of close to 200 million Euros in the year 2002, placing it amongst the leading mid-size providers of integrated logistics services in Germany. With almost 900 employees, the company focuses on industry-specific contract logistics solutions and, in transport logistics, manages a network with over 100 regular line operations to all the German and European economic centres.

"With the acquisition of Pracht, we are expanding our presence in Germany, strengthening our leading market position in contract logistics and are investing in a company with a successful overland transport concept", said Ewald Kaiser, the Managing Director of Kühne & Nagel (AG & Co.) KG. "Both partners will benefit from this merger."

Pracht, with more than 140,000 m2 of warehousing and logistics space, has its central warehouses favourably located in central Germany (Haiger and Rennerod). In addition, the company has branches in Kassel, Stadtallendorf, Siegen und Wetzlar. The modular-based service offering encompasses all services ranging from transportation to warehousing to complete logistics solutions.

"In the framework of our ambitious plans for the further successful expansion of Kuehne & Nagel in Germany, the acquisition of Pracht Spedition + Logistik GmbH is a significant step", comments Klaus-Michael Kuehne, President of the Board of Directors of Kuehne & Nagel International AG. "Pracht's many years of experience and proven capabilities in overland transportation offers the ideal platform to expand this business sector." The agreement is subject to the approval of various bodies. Both parties agreed not to disclose the purchase price.

With 18,500 employees at 600 locations in 96 countries, the Kuehne & Nagel Group is one of the world's leading logistics companies. Its strong market position lies in the ocean-, airfreight and contract logistics businesses, with a clear focus on providing IT-based Supply Chain Management Services.The German Kuehne & Nagel organisation employs around 4,000 people in 40 locations.