Panalpina to acquire majority stake in Airflo

The international freight forwarding and logistics company reached an agreement with Dutch Flower Group Wednesday to acquire a majority stake in its airfreight forwarder Airflo.    Panalpina has reached an agreement with Dutch Flower Group (DFG) Wednesday to acquire a majority stake in its airfreight fowarader Airflo, the third-party logistics said.
   DFG consists of 30 companies that play a role in the import, export, trade and marketing of flowers and plants. Based in the Netherlands and Kenya, Airflo is DFG’s only company involved in the transport and logistics of perishables.
   Airflo is Kenya’s second largest air freight forwarder and has a focus on shipments to the Netherlands and the United Kingdom. In Kenya, Airflo provides a variety of services including quality control once growers deliver products to its Nairobi warehouse, palletizing and the delivery of goods to the ground handling agent at Jomo Kenyatta International Airport. In addition, the air freight forwarder coordinates its shipments with the airlines, handles customs clearance at Amsterdam Airport Schiphol and onward distribution.
   In 2014, fresh cut flowers accounted for over 60 percent of Kenya’s total air freight exports.
   “Kenya’s flower business is literally flourishing, with expected annual export growth rates of around 5 percent, Panalpina Global Head Specialty Vertical Perishables Colin Wells said in a statement. “While it is seasonal, it is also characterized by substantial air freight volumes on routes from south to north, counterbalancing the flow of dry cargo, which is typically flown the other way.”
   The acquisition is subject to approval by the Kenyan and Dutch authorities and financial details were not disclosed.