U.K. logistics company Christian Salvesen PLC has agreed to sell its German frozen food unit, AGRO Handelsgesellschaft, citing a deteriorating market as German food retailers take logistics operations in-house. The German frozen food business is being sold to a group of individuals including its managing director for a nominal consideration.

The company would consider re-entering the German food logistics business if market conditions improved sufficiently. Chief Executive Edward Roderick said Christian Salvesen remains determined to expand its European operations and has £150m in cash to spend on acquisitions.

"We flagged our intention to exit the cold store food market two years ago and concentrate on our industrial logistics business in Germany," said Roderick. "Germany remains a strategically important market in our objective of creating a Europe-wide logistics network."