Kuehne+Nagel has announced its acquisition of Ontario-based customs broker Farrow which complements its cross-border capabilities at the US borders with Canada and Mexico.

It also expands its customs brokerage offering in North America.

"With the announcement of the acquisition of Farrow, a well-reputed Canada-based customs broker, Kuehne+Nagel takes a step forward in its Roadmap 2026 growth ambitions," Kuehne+Nagel said in the announcement.

It added that the acquisition complements Kuehne+Nagel's offering for companies that increasingly rely on customs clearance services and supports the growing demand in an environment of increasingly complex international trade regulations.

Kuehne+Nagel noted that the completion of the transaction is expected during the first quarter of 2024.

The acquisition is subject to approval from regulatory authorities and customary closing conditions. Upon closing, Farrow will become a fully owned subsidiary of Kuehne+Nagel.

Farrow is headquartered in Windsor, Ontario, Canada and is rooted in a 112-year heritage. It is supported by 830 employees in 41 locations across Canada and the US. In 2022, Farrow managed over 1.5 million customs entries.

Kuehne+Nagel said the acquisition of Farrow will be "immediately earnings-accretive" and will expand the company's customs capabilities in a complementary way, especially at the Canadian and Mexican borders of the US.

"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, member of the Management Board, responsible for Road Logistics, Kuehne+Nagel International AG.

"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," he added.

Rick Farrow, chairman, Farrow noted that the company is excited to take its long-time, family-owned business to the next level and welcome the opportunity to be part of one of the world's leading logistic companies.

"This allows us to combine our extensive expertise in customs brokerage with the capabilities and global reach of Kuehne+Nagel, allowing us to provide extraordinary supply chain solutions for our customers, as well as creating new opportunities for career growth for our colleagues," Farrow said.