DP World has reached an agreement with GXO Logistics to take over six UK contract logistics sites serving grocery customers.
The facilities provide more than two million square feet of warehouse capacity and employ over 2,000 people.
Five sites operate in England, while one operates in Northern Ireland. They serve Asda, Sainsbury’s and the Co-op.
The sites will transfer to DP World in September. Moreover, more than 2,000 employees will join DP World’s UK operations.
GXO will retain the transport operations at all applicable sites.
The UK Competition and Markets Authority (CMA) required GXO to transfer the sites as a condition of its Wincanton acquisition.
The CMA has approved the transfer to DP World.
The agreement will expand DP World’s UK contract logistics network. It will also strengthen its services for grocery, retail and consumer customers.
The six facilities will add approximately two million square feet of warehouse capacity to DP World’s UK network.
The sites provide ambient, chilled, frozen and bonded storage services. Therefore, they can support a wide range of grocery supply chain requirements.
The facilities supply grocery products to communities across the UK. Their customers include out-of-town supermarkets, branded convenience stores and neighbourhood shops.
Around 46,000 unique products will be stored across the warehouses.
DP World’s existing UK operations include the London Gateway and Southampton container ports. The company also provides logistics, freight forwarding and marine services.
By adding the six facilities, DP World will expand its national distribution footprint. The company will connect the sites with its existing port, terminal, warehouse and logistics operations.
“We are delighted to welcome these six sites and the talented teams who operate them into DP World,” said Angela Howard, Vice President, Contract Logistics, North Europe, 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,” added Howard.
DP World said customers would continue to receive their existing services following the transfer.
“For our customers, it will be business as usual, backed by the strength, scale and investment of a global logistics business,” said Howard.
“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,” she added.
Howard said the agreement would also broaden DP World’s geographic reach across the UK and Europe.
“This is an important step in our ambition to build a truly end-to-end logistics offering across the UK and Europe,” she concluded.
