Kuehne+Nagel seals long-term Amazon deal

Kuehne+Nagel has entered into a long-term strategic collaboration with Amazon (AMZN) that includes Amazon Web Services. The partnership is focused on providing logistics support for cloud-infrastructure projects, aligning Kuehne+Nagel’s global logistics capabilities with Amazon’s expanding infrastructure needs.

The collaboration is designed to span the full infrastructure life cycle. It covers the construction phase and deployment of equipment, as well as the ongoing maintenance of facilities, upgrades to existing installations and future expansion projects.

Within this framework, Kuehne+Nagel will support logistics for AWS-related infrastructure across multiple stages of development. This includes moving specialized equipment to construction sites, coordinating deliveries for deployment, and managing flows of hardware and components required for smooth operations.

The life-cycle coverage is intended to ensure continuity from initial build-out to later optimization and scaling. By encompassing maintenance and upgrade logistics, the arrangement aims to support the long-term operation and evolution of cloud-infrastructure assets.

The agreement includes an equity-linked component in the form of a call option on existing Kuehne+Nagel shares held by Amazon. This option can be settled either in cash or, at Amazon’s election, in Kuehne+Nagel shares, providing flexibility in how the arrangement is ultimately executed.

Exercisability of the call option is tied to commercial milestones and services delivered over a period of up to seven years. To support the structure and manage related exposures, Kuehne+Nagel has engaged a third-party financial institution to carry out hedging transactions in its own shares.

Kuehne+Nagel stated that it currently generates annual revenue with Amazon in the high three-digit millions. The company indicated that the expanded collaboration has the potential to increase this level of revenue to several billions as the relationship develops.

Equity investors reacted positively to the announcement. Kuehne+Nagel shares rose about 3.3% after the deal was unveiled and reached an intraday 52-week high around CHF 226.6, reflecting heightened market interest in the long-term partnership and its growth potential.