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Kuehne + Nagel buys Kenyan, US firms to expand perishables reach

THROUGH the acquisitions of Commodity Forwarders Inc (CFI), the leading air freight forwarder of perishables products in the USA, and Trillvane Ltd, one of the largest perishables specialists in Kenya, Swiss logistics giant Kuehne + Nagel has expanded its global perishables network by adding 150,000 tons of perishables.

The acquisitions further strengthen Kuehne + Nagel's position in providing end-to-end international and domestic fresh chain solutions.

Established in 1974 by Alfred Kuehlewind as a one-man office in Los Angeles shipping strawberries to Europe, CFI today operates 14 locations throughout the United States, including Alaska and Hawaii, with 700 employees.

The company specialises in air freight export and import, as well as the distribution of seafood, agricultural products, flowers and greens. As a leader in the US perishable forwarding industry, CFI differentiates itself through its expertise, ability to provide high-end visibility and delivering unprecedented product quality for its customers' fresh chains.

Founder and CEO of CFI, Alfred Kuehlewind, said: "We are looking forward to becoming a part of the Kuehne + Nagel Group. 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 Ltd, Kenya, 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.

Member of the management board of Kuehne + Nagel International AG, Yngve Ruud, who is responsible for air freight 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 air freight. Together with CFI Kuehne + Nagel becomes the number two air freight forwarder in the United States and the acquisition of Trillvane confirms our leading position in Kenya," said Mr Ruud.

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