DP World has reached an agreement with GXO Logistics for the transfer of six contract logistics sites serving grocery customers, comprising more than 186,000m2 of warehouse capacity and around 2,000 personnel.
The transfer was a regulatory condition of the UK Competition and Markets Authority‘s (CMA) approval of GXO’s acquisition of Wincanton and has been approved by the CMA.
The six sites, five in England and one in Northern Ireland, serve Asda, Sainsbury’s and the Co-op and will transfer to DP World in September. More than 2,000 employees will join DP World’s UK operations, which include container ports at London Gateway and Southampton, alongside logistics, freight forwarding and marine services. GXO will retain transportation operations at all applicable sites.
The facilities provide ambient, chilled, frozen and bonded storage capabilities to support grocery customer needs, supplying products to out-of-town supermarkets, branded convenience stores and neighborhood stores across the UK. Some 46,000 unique products will be stored at the warehouses.
Angela Howard, vice president of contract logistics, North Europe at DP World, said, “We are delighted to welcome these six sites and the talented teams who operate them into DP World. They support some of the UK’s best-known grocery retailers and play a vital role in keeping products moving efficiently through complex supply chains every day.
“For our customers, it will be business as usual, backed by the strength, scale and investment of a global logistics business. 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.
“This is an important step in our ambition to build a truly end-to-end logistics offering across the UK and Europe. It strengthens our presence in key retail and consumer markets, broadens our geographic reach and further enhances our ability to create value for customers.”
Related news, Karl Lagerfeld expands Bleckmann partnership with second Spanish fulfillment hub