Kuehne+Nagel (K+N) has purchased Canadian customs broker Farrow as it responds to "increasingly complex international trade regulations".
Farrow employs 830 people at 41 locations across Canada and the US and in 2022 the firm managed more than 1.5m customs entries.
Explaining the logic behind buying the firm, K+N said that companies increasingly rely on customs clearance services and it would also support "growing demand in an environment of increasingly complex international trade regulations".
Completion of the transaction is expected during the first quarter of 2024.
Hansjörg Rodi, K+N member of the management board, responsible for road logistics, said: "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.
"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 chairman Rick Farrow said the move would provide his firm with a global reach and expand capabilities.
K+N said the acquisition of Farrow would be immediately earnings accretive.
The deal is subject to approval from regulatory authorities and customary closing conditions.
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