DHL reached an agreement to acquire FC (Flying Cargo) International Transportation Ltd, theInternational freight forwarding unit from the privately owned Flying Cargo Group, based in Tel
Aviv, Israel, to establish a strong presence in the Israeli international forwarding market.DHL Global Forwarding will acquire 100% of the business. It has been agreed not to disclosefinancial details. The transaction is subject to regulatory approval and is expected to be closedin the next few weeks. The management of FC (Flying Cargo) International Transportation Ltd remainsunchanged for at least the next two years.
In Israel, FC (Flying Cargo) International Transportation Ltd is the market leader in air andocean freight and has been the agent of DHL Global Forwarding in the country for many years.
DHL 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 attractivesectors, like healthcare and electronics.
“We are very pleased that we have managed to reach agreement to acquire this business. Israelis an attractive market with consistent economic growth and FC (Flying Cargo) InternationalTransportation Ltd is the clear market leader. We are confident that adding them to our globalnetwork 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 DHLGlobal Forwarding to acquire our Freight Forwarding business as the highest expression ofconfidence in our company, our management and our employees. Having served as an agent for DHLGlobal Forwarding for many years and sharing a common vision with it, we are confident that we areputting our company in the right hands.’’
Flying Cargo Group was established in 1982. FC (Flying Cargo) International TransportationLtd is the Group’s international freight forwarding unit with an annual turnover of over ILS 900million (EUR 157.1 million) and 530 employees.
