Kuehne + Nagel (K+N) is buying Canadian customs broker Farrow for an undisclosed sum. The global logistics provider said the acquisition will expand its customs capabilities in North America, notably at the Canadian and Mexican borders of the US. Completion of the transaction is expected during the first quarter of 2024.
Farrow has 41 locations across Canada and the US, and managed over 1.5m customs entries in 2022. K+N said the Farrow business would complement its customs clearance services for companies faced with increasingly complex international trade regulations.
“With Farrow, we acquire a leading, diversified customs brokerage and logistics company that brings with it a proven track record of success, a growth-oriented mindset, and significant business scalability,” said Hansjörg Rodi, head of road logistics at Kuehne + Nagel International. “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.”
Farrow provides customs clearance services to the automotive industry amongst others and its headquarters are located near Detroit. The company has built a strong automotive expertise and also offers in-house automotive consulting services, trade compliance expertise and warehouse services.
“Together, we will combine our extensive expertise in customs brokerage, trade consulting, and logistical services with the capabilities and global reach of K+N to provide extraordinary supply chain solutions for our customers, as well as create new opportunities for career growth for our colleagues,” said Rick Farrow, chairman of the company.
Along with its wide range of logistics services for the automotive sector, K+N’s existing customs clearance capabilities for imports and exports covers preparation and processing of customs declarations, duty and tax calculations, and inspections. The company also provides bonded warehousing, inward/outward processing relief and free trade zone clearances.