K + N acquires Ecuadorian perishables specialist
Aug 3, 2018
The purchase of Panatlantic Logistic builds on two acquisitions in the sector last year. By Ben Meyer |Friday, August 3, 2018
Global freight forwarder Kuehne + Nagel International AG has acquired the perishables business of Panatlantic Logistics S.A., Ecuador, a Quito-based firm specializing in the transport of flowers and fruit by air, the companies said in a joint statement. Terms of the deal were not disclosed, but K + N said the purchase will strengthen the company’s position in the Ecuadorian export market to the United States, Europe and Asia. Founded in 1979, Panatlantic Logistics’ operations currently are handled in a temperature- controlled warehouse at the Quito airport. K + N expects the combined volume of its current business portfolio and Panatlantic’s will account for 32,000 tons of air export perishables per year out of Ecuador and 120,000 tons annually from the South and Central America region as a whole. The deal builds on two other acquisitions K + N made in the perishables logistics space in 2017. The company completed its purchase of 100 percent of shares in Trillvane Ltd. in September and Commodity Forwarders Inc. in October. “Perishables logistics is a strong growth driver for Kuehne + Nagel,” Yngve Ruud, a member of the managing board of Kuehne + Nagel responsible for air freight, said of the purchase. “After the integration of two market leaders in 2017, the acquisition of the perishables business of Panatlantic Logistics S.A. marks another important step in our global strategy. “Our KN FreshChain offers scalable solutions and highest standards for transportation of temperature-sensitive perishable products,” he added. “With Panatlantics Logistics on board we further strengthen and expand our fresh chain network — the largest in the logistics industry for perishables — connecting key production countries to major markets.”
Raúl Aragundi, CEO and shareholder of Panatlantic Logistics S.A., said that by becoming part of the Kuehne + Nagel Group, the combined entity will “co-create an enormous potential of opportunities for our customers. Our strong and reliable market position in Ecuador will add and generate new and multiple chances for growing perspectives and services.”
Added Ingo Goldhammer, president of Kuehne + Nagel’s South and Central American region, “By acquiring this specialized player, Kuehne + Nagel consolidates its leading position in one of South America’s key perishables export markets and, at the same time, considerably strengthens its position in the regional air freight markets. “Beyond combined volumes and generation of synergies with our existing operations, we will enhance the service and value add offering to our customers, using the experience of both companies,” Goldhammer said.