DHL, the leading logistics company and subsidiary of Deutsche Post World Net, reached an agreement to acquire FC (Flying Cargo) International Transportation Ltd, the International Freight Forwarding unit from the privately owned Flying Cargo Group, based in Tel Aviv, Israel.
DHL Global Forwarding will acquire 100 percent of the business. It has been agreed not to disclose financial details. The transaction is subject to regulatory approval and is expected to be closed in the next few weeks.
The management of FC (Flying Cargo) International Transportation Ltd remains unchanged for at least the next two years.
In Israel, FC (Flying Cargo) International Transportation Ltd is the market leader in Air and Ocean Freight and has been the agent of DHL Global Forwarding in the country for many years. The acquisition enables DHL Global Forwarding to establish a strong presence in the Israeli International Forwarding market. The company considers the acquisition a selective move, as Israeli trade growth is strong and FC (Flying Cargo) International Transportation provides a solid customer base in highly attractive sectors, like Healthcare and Electronics.
“We are very pleased that we have managed to reach agreement to acquire this business. Israel is an attractive market with consistent economic growth and FC (Flying Cargo) International Transportation Ltd is the clear market leader. We are confident that adding them to our global network is the right step for us.” said Chris Fahy, CEO of DHL Global Forwarding.
Dany Reik, founder and co-owner of the Flying Cargo Group, said: “We view the decision of DHL Global Forwarding to acquire our Freight Forwarding business as the highest expression of confidence in our company, our management and our employees.Having served as an agent for DHL Global Forwarding for many years and sharing a common vision with it, we are confident that we are putting our company in the right hands."