Kuehne + Nagel is expanding its perishables network with the acquisition of businesses in the United States and Kenya.
In the US, K+N is acquiring Commodity Forwarders Inc (CFI) which is based in Los Angeles and has 14 offices across the US and employs 700 people. It specialises in airfreight export and import as well as distribution of seafood, all kinds of agricultural products, flowers and greens.
Alfred Kuehlewind, founder and chief executive said: “The planned transaction will offer us new growth perspectives and access to a global logistics network. Both companies’ customers will benefit from an extended service scope.”
The acquisition of Trillvane in Kenya, is designed to strengthen Kuehne + Nagel’s position in perishables operations between Kenya and Europe, particularly the UK. Trillvane, which is based at Jomo Kenyatta Airport in Nairobi, specialises in the export of flowers and vegetables.
K+N director Yngve Ruud said: “Together with CFI Kuehne + Nagel becomes the number two airfreight forwarder in the United States and the acquisition of Trillvane confirms our leading position in Kenya.”
* Kuehne + Nagel increased turnover by 8.2 per cent to CHF 8,815 million in the first half of 2017, while EBITDA improved by 1.3 per cent to CHF 554 million.
Chief executive Detlef Trefzger said: “The result of the first half of 2017 is a clear evidence of our growth-oriented business strategy as well as efficient cost management, which enabled us to counter the ongoing pressure on margins in seafreight and airfreight. The remarkable improvements of results in contract logistics and overland are mainly due to the successful implementation of our market strategies.”
In Contract Logistics an additional 540,000 square metres of warehousing and logistics space were added to operations. Gross profit increased by 6.6 per cent and EBITDA by 10.5 per cent.
Seafreight volume increased by 7.7 per cent but margins remained under pressure and below the previous year’s level.
Airfreight tonnage was up by 18 per cent. The group said a strong demand for industry-specific airfreight solutions has made a significant contribution to this positive development. New business was gained particularly in the pharma, aerospace and perishables industries.
In the overland business net turnover increased by 3.3 per cent and gross profit by 3.5 per cent, compared to the previous year.