Expanding its Horizons: Kuehne + Nagel’s Acquisition of Farrow

Global logistics provider Kuehne + Nagel (K+N) has recently announced the acquisition of Canadian customs broker, Farrow. This strategic move is aimed at bolstering their customs capabilities in North America, particularly at the Canadian and Mexican borders of the US. The undisclosed sum acquisition is projected to be completed during the first quarter of 2024.

Farrow, with 41 locations across Canada and the US, has made a significant impact in the customs brokerage and logistics industry by handling over 1.5 million customs entries in 2022. K+N sees the acquisition of Farrow as a means to enhance their customs clearance services, especially in the face of increasingly intricate international trade regulations.

According to Hansjörg Rodi, the Head of Road Logistics at Kuehne + Nagel International, the addition of Farrow to their portfolio brings along a wealth of experience, a forward-thinking approach, and substantial potential for business growth. He stated, “The acquisition of Farrow greatly accelerates Kuehne + Nagel’s growth ambitions in the customs market and is a compelling, strategic fit, expanding our offering of value-added solutions.”

Particularly notable is Farrow’s expertise in providing customs clearance services to the automotive industry and its headquarters’ proximity to Detroit. Moreover, the company is renowned for its in-house automotive consulting services, trade compliance expertise, and warehouse services. Rick Farrow, chairman of the company, expressed his enthusiasm for the acquisition, emphasizing the potential to combine expertise and global reach in order to provide exceptional supply chain solutions for customers while also creating new career opportunities for colleagues.

In addition to its existing customs clearance capabilities, K+N offers a wide range of logistics services for the automotive sector. This includes preparation and processing of customs declarations, duty and tax calculations, as well as bonded warehousing, inward/outward processing relief, and free trade zone clearances for imports and exports.

The acquisition of Farrow represents a significant step forward for Kuehne + Nagel, enabling them to further solidify their position in the customs market and deliver enhanced services to their clients. As the completion of the transaction draws closer, it is evident that this strategic move holds promising prospects for both Kuehne + Nagel and Farrow in the realm of logistics and customs brokerage.