Tuesday, July 18, 2017

Swiss Freight Forwarder Expands Perishable Market Share with US and Kenyan Acquisitions

K+N Buys Up CFI and Trillvane
Shipping News Feature
SWITZERLAND – US – KENYA – Kuehne + Nagel has expanded its share of the perishable commodities market by acquiring Commodity Forwarders Inc. (CFI), US based airfreight forwarder specialising in the transportation of perishable products worldwide, and Trillvane, the in-house freight forwarding and logistics firm of Kenya's agribusiness, Flamingo Horticulture. The purchases means K+N expands its global perishables network and further strengthens its position in providing end-to-end international and domestic fresh chain solutions.

CFI was established in 1974 as a one man office in Los Angeles shipping strawberries to Europe. Today the company operates 14 locations throughout the United States including Alaska and Hawaii with more than 700 employees. The company specialises in airfreight export and import, as well as distribution of seafood, agricultural products, flowers and greens.

The acquisition of Trillvane will enable Kuehne + Nagel to strengthen its position in perishables operations between Kenya and Europe, in particular to the UK. With its 130 employees Trillvane is specialised in the export of flowers and vegetables. Its location at the Jomo Kenyatta International Airport in Nairobi provides easy and quick access to all major airlines allowing for later cut-offs and shorter transit times leading to both cost savings and optimal handling of temperature sensitive goods. Yngve Ruud, member of the Management Board of Kuehne + Nagel International, responsible for Airfreight Logistics, said:

“The two acquisitions mark another important step in our global perishable logistics strategy. These two transactions further strengthen and expand our fresh chain network connecting key production countries to major consumer markets. The business potential in the steadily growing global perishable sector is huge. Based on our dedicated network – by now the largest in the logistics industry for perishables – and globally integrated IT systems we can scale business opportunities and accelerate our growth in this sector with end-to-end transparency.

“At the same time, we improve our global and national positioning in airfreight. Together with CFI Kuehne + Nagel becomes the number 2 airfreight forwarder in the United States and the acquisition of Trillvane confirms our leading position in Kenya.”

All parties have agreed not to disclose the purchase price. Both transactions are subject to customary closing conditions and to clearance by the competent merger control authorities.