D.Logistics AG and KLM Royal Dutch Airlines have signed an agreement for the full acquisition of Cargo Service Center (CSC) by D.Logistics AG. CSC, currently wholly-owned by KLM, is a major global air cargo ground services operator. CSC delivers cargo handling and value-added services to airlines and forwarders, handling more than 1.5 million tons of cargo annually through 65 stations in 17 countries, ensuring a worldwide presence.

Last year D.Logistics and KLM Royal Dutch Airlines jointly announced they had signed a Letter of Intent for this transaction. The CSC sale is part of KLM’s strategy of placing greater focus on its core activities: transportation of passengers and cargo; and engineering and maintenance. In the German-based D.Logistics AG, KLM has found a solid home for the further expansion of CSC’s business activities. D.Logistics is one of the leading parties for integrated full-logistic service solutions on the European market.

CSC ideally complements D.Logistics’ current Airport Cargo service business. Integration of CSC will provide D.Logistics with a strong worldwide presence in airport services, while enhancing the group’s overall integrated supply chain solutions. With CSC, D.Logistics’ logistic services, i.e. Consulting IT-Solutions, E-Business and Packaging will develop far more rapidly and on an international basis. Combining D.Logistics’ existing businesses and CSC will support further expansion of CSC to the market’s first one-stop shopping, logistical full-service provider of air cargo services. The D-Logistics Airport Services unit, with more than ten years of experience, processes approximately 500 thousand tons of cargo annually. The new CSC company resulting from the merger with D-Logistics Airport Services will handle more than two million tons of cargo yearly.

Rapid growth will be achieved by maintaining complete neutrality to win all market segment as customers (i.e. airlines, forwarders, shipper/industry and airports); by expanding the global network; optimizing basic ground handling processes; acquiring new customers and developing new business in the scope of supply chain management through future innovative IT and E-Business solutions.

CSC will continue to honor its service contract with KLM Cargo.

The acquisition by D-Logistics will not impact the position of the approximately 3,000 CSC employees. All employees will keep their current jobs or transfer to an equivalent job within CSC.

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