Freight forwarding and logistics giant Kuehne + Nagel International AG has acquired the perishable logistics specialists Commodity Forwarders Inc. (CFI) and Trillvane Ltd., expanding its position in the international and domestic perishables sector, the Swiss firm said Tuesday.
Details of the deal were not disclosed. Both transactions are subject to customary closing conditions, Kuehne + Nagel said. The CFI deal is expected to close in September following approval by U.S. antitrust regulators, CFI said.
Los Angeles-based CFI is an airfreight forwarder specializing in perishables handling, with 14 locations and more than 700 employees throughout the U.S. The firm specializes in airfreight export and import as well as the distribution of seafood, agricultural products, flowers, and greens, according to Kuehne + Nagel.
CFI will continue to operate under its own name, retaining its management, leadership, and customer service teams, CFI President Chris Connell said in a blog post. "In practical terms, the 'Fresh solutions' product will remain separate from K+N's regular day-to-day dry cargo operations within North America," Connell wrote in the post. "Perishables are so unique; the knowledge set and urgency needed in running it on a day-to-day basis continues unchanged. It is people, facilities, and the understanding that every second counts."
The acquisition of Nairobi-based Trillvane, one of the largest perishables specialists in Kenya, will allow Kuehne + Nagel to strengthen its perishables operations between Kenya and Europe, in particular to and from the U.K., Kuehne + Nagel said. Trillvane focuses on the export of temperature-controlled goods such as flowers and vegetables.
"The two acquisitions mark another important step in our global perishable logistics strategy," Yngve Ruud, member of the management board of Kuehne + Nagel International AG, responsible for airfreight logistics, said in a statement. "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."
The deal will allow Kuehne + Nagel to accelerate its growth in that sector by scaling its dedicated network, globally integrated IT systems, and end-to-end transparency, Ruud said.