Kuehne & Nagel has become the latest foreign transportation provider to acquire a U.S.-based third-party logistics company. The Schindellegi, Switzerland-based concern recently closed on its purchase of USCO Logistics of Naugatuck, Conn., for $300 million. USCO has operations in the United States, Canada, and Mexico, accounting for more than 15 million square feet of shared and dedicated warehousing space. USCO will operate as an integrated service unit within the Kuehne & Nagel Group.

USCO has focused on providing warehousing and third-party logistics services for the pharmaceutical, retail, and high-tech industries. The company has more than 3,000 employees at 70 locations in North America. Its new owner, Kuehne & Nagel, provides global freight forwarding, customs brokerage, contract logistics, and information-technology–based supply-chain management services. It has more than 14,000 employees at 530 locations in 90 countries.

Kuehne & Nagel says that the combination will give USCO's customers access to its portfolio of global services. In turn, Kuehne & Nagel's customers will benefit from USCO's North American service offerings. "There is an ideal fit between Kuehne & Nagel and USCO," says Klaus-Michael Kuehne, executive chairman. "Kuehne & Nagel's heritage stems from freight forwarding; USCO's from warehousing and distribution." Klaus Herms, chief executive officer of forwarding arm Kuehne & Nagel International AG, adds that the acquisition will not result in the closure of any offices or in any layoffs.

Kuehne & Nagel's acquisition of USCO is only the latest in a recent string of acquisitions among international and domestically oriented logistics service providers. UPS Logistics Group has bought companies in Australia, France, and Germany to expand its reach overseas. Other examples include deals between Fritz Cos. and UPS, Eagle Air Freight and Circle International, APL Logistics and GATX Logistics, and MSAS and Exel. The combinations are driven in large part by demands from multinational corporations for one-stop shopping for both international and domestic logistics services.