Target Information

Customs Support, known for its neutral and dynamic approach to customs matters in Europe, has recently acquired WZC Riemann and DCLARE Customs Service. This strategic acquisition enhances Customs Support's footprint in Germany, allowing it to better support clients with import, export, and transit operations local to their needs. WZC Riemann, a family-operated business with over 140 years of customs experience, is recognized for its commitment to exceptional service, flexibility, and modern digital communication. Since achieving AEO certification in 2009, WZC Riemann has exemplified how family businesses can deliver long-term value through tailored customer support.

Under this acquisition, managing director Friederike Engelken will join the German Board of Customs Support. Engelken expressed her enthusiasm for the collaboration, emphasizing the importance of customer service and the “single point of contact” policy, which aligns with Customs Support's operational philosophy.

Industry Overview in Germany

The customs industry in Germany plays a critical role in managing the flow of goods across borders. As the largest economy in Europe, Germany's customs sector serves a diverse range of industries, including automotive, chemicals, and textiles. The country’s well-established logistics infrastructure and regulatory frameworks facilitate efficient trade operations.

German customs brokers are increasingly focusing on digital solutions to streamline processes and improve compliance with international trade regulations. The adoption of innovative technologies enhances service delivery and allows clients to navigate the complexities of customs regulations more effectively.

Moreover, with the recent shift towards e-commerce, customs practitioners in Germany are adapting their services to accommodate the growing volume of cross-border transactions that require customs clearance. The integration of technology-driven approaches is also crucial in the ongoing response to challenges posed by changing trade agreements and international regulations.

As businesses look for ways to optimize their logistics and customs processes, the demand for experienced customs brokers like Customs Support continues to rise. This trend underscores the significance of acquisitions, like that of WZC Riemann, in bolstering regional capabilities and expertise.

Rationale Behind the Deal

The acquisition of WZC Riemann and DCLARE Customs Service represents a strategic move for Customs Support to solidify its presence in the German market. By merging resources with WZC Riemann, Customs Support aims to enhance its service offerings and respond more nimbly to client needs in import and export activities. Additionally, this acquisition aligns with the company's broader strategy of achieving growth through both organic initiatives and mergers and acquisitions.

This partnership not only expands Customs Support’s operational capacity in Germany but also allows for a deeper integration of services, ultimately providing clients with comprehensive customs solutions across Europe.

Information about the Investor

Castik Capital S.à r.l. is a private equity firm based in Luxembourg, specializing in managing investments in both private and public companies across Europe. Established in 2014, Castik Capital seeks to generate long-term value through active partnerships with management teams, focusing on sectors that show significant growth potential.

The firm’s investment approach is grounded in thorough market analysis and the identification of key opportunities within the European landscape. Castik Capital is guided by its commitment to fostering growth and enhancing performance in the companies it invests in, such as Customs Support.

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The acquisition of WZC Riemann and DCLARE Customs Service by Customs Support is generally viewed as a positive development for the company and the industry as a whole. This deal combines the specialized knowledge and local market expertise of WZC Riemann with Customs Support’s robust operational framework, paving the way for a stronger competitive edge in Germany.

Moreover, this merger aligns with the growing trend within the customs industry towards digitalization and efficiency, allowing Customs Support to offer more comprehensive services that meet the evolving needs of clients. The investment underscores the importance of adapting to market dynamics, particularly in a post-Brexit context where trade compliance has become increasingly significant.

From an investment perspective, this acquisition holds potential for significant returns. By expanding its geographic footprint and service capabilities, Customs Support is better positioned to capture a larger share of the customs brokerage market in Europe, leading to increased revenues and profitability.

Lastly, the integration of WZC Riemann’s established relationships and experience in the customs sector can further enhance Customs Support's reputation and service quality, making this acquisition not just a strategic maneuver but a wise investment in fostering long-term client loyalty and satisfaction.

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