News / Kerry Logistics continues expansion drive with purchase of Spanish forwarder Bofill & Arnan

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Hong Kong 3PL Kerry Logistics Network has continued its international expansion drive with today’s news of its takeover of Spanish freight forwarder Bofill & Arnan.

The deal is likely to see some of Bofill & Arnan’s operations merged into Kerry’s established Iberian presence, such as in its head office in Barcelona.

However, the deal will expand Kerry’s presence in the Mediterranean ports of Valencia and Alicante.

Europe MD Thomas Blank said: “I am very pleased to welcome the freight forwarding team of Bofill & Arnan to join the Kerry Logistics network. The combined resources and expertise will significantly enhance our position and service capabilities in Spain and expand our market reach.

“The freight forwarding businesses of Bofill & Arnan will be integrated into our network and will continue to be developed by the experienced management team led by Sebastian Bernardo, our managing director of Spain.”

Bofill & Arnan was established nearly 100 years ago, and operates six offices across the country.

Kerry said the firm had developed a special focus on tradelanes between Spain and China, Taiwan and India, offering the full range of customs brokerage and freight forwarding services, including the sea-air concept that has become a favourite supply chain tool of the fast fashion houses exemplified by the Inditex brand Zara. It said it was clear that gaining a greater foothold in this market was part of its motivation for the purchase.

“Spain is home to some of the world’s biggest fashion retailers and some of Kerry Logistics’ global key accounts. Kerry Logistics will continue to invest in this key market in Europe and strengthen its service capabilities and network, ensuring best-in-class supply chain solutions are provided to its clients, in particular in the fashion and lifestyle industry,” it said in a statement.

In a separate development, Kerry also recently renewed a framework deal with its largest shareholder, Kerry Properties (KPL), under which the logistics operation leases a set of warehouses owned by KPL, and provides its landlord with logistics services “relating to the management and operation of the warehouse facilities”.

The company said both arrangements were made “on normal commercial terms and on an arm’s length basis, or on terms no less favourable than those available to the group from independent third parties”.

The original framework agreement lasted from July 2014 to the end of this year. The new agreement extends it for three years to the end of 2019.