Kerry Logistics will continue an expansion in Latin America by taking a majority stake in Cargo Master's Group (CMG), a Mexico-based logistics and freight forwarding company.
Kerry Logistics did not disclose how much it would pay for CMG or the exact stake that it would hold. In a statement the company said that integrating CMG would give the Hong Kong-based provider a good platform in Mexico’s growing economy and strengthening trade ties, including with China and other countries in Asia.
While Kerry currently has eight offices in the United States, until now it only had agent representation in Mexico City. CMG has six offices in Mexico offering freight forwarding and integrated logistics services.
“This acquisition is part of our strategic objective to further develop our business and network in the dynamic Americas region,” said William Ma, managing director of Kerry Logistics Network.
The acquisition follows Kerry’s purchase of Braservice of Brazil in June, a provider specialising in automotive, fashion and fast moving consumer goods in the region.
Kerry Logistics declined to comment on the extent of automotive business that the CMG investment was likely to involve. However, several of CMG’s offices are located close to areas where automotive production is growing, including in Peubla, where there is a Volkswagen Group factory, Queretaro (MAN) and Guadalajara (Honda).
CMG was originally founded by German logistics provider Rhenus in 1982 and bought out by its board of directors in 1994.
Thomas Kroeger, general director of CMG, said: "We are truly excited to be part of the Kerry Logistics global network. This integration will open-up new possibilities of growth and will enable us to further expand our market share in Mexico.”
