Canadian customs broker Livingston International says it has acquired Texas-based firm Maquilogistics Inc. to broaden its services by handling growing export trade from Mexico to the United States.
Financial terms weren't disclosed in Friday's announcement.
"Our companies are a very good fit," said Livingston president and CEO Peter Luit in a release.
"This acquisition enables us to provide one-stop customs and compliance services for U.S. companies importing goods from Mexico, Canada and around the world."
This strategic move will extend Livingston's customs and compliance expertise to companies importing into the United States from Mexico, including those taking advantage of the Mexican maquiladora program who must meet complex regulatory requirements to maintain the benefits of the program.
"This is a very friendly deal," said Jim McNamara, principal and co-owner of Maquilogistics, which will help Livingston become a national full-service U.S. customs broker.
The so-called maquiladora sector along the Mexico-U.S. border employs about 1.3 million Mexicans and is made up of thousands of small Mexican manufacturing plants which assemble parts and components into everything from televisions and car parts to fashionable clothing and ship them to the United States.
About half of Mexico's manufactured goods exports come from maquiladora factories, many of which supply major U.S., Japanese or European corporations who sell the their goods into the giant American market.
Parts imports and exports of finished goods are generally duty free, but there are all sorts of customs rules that must be met and the maquiladora company must post a bond and declare that the imported part or equipment will not permanently remain in Mexico.
Livingston is Canada's largest customs broker at the border and has been working towards becoming a full-service U.S. customs broker
Based in Toronto, Livingston has more than 2,200 employees at about 100 key border points, while Maquilogistics has about 50 staff at offices and warehouses in Texas border communities of McAllen, Brownsville, El Paso and Laredo.
Maquilogistics specializes in customs clearance, compliance and logistics services for importers and exporters with maquiladora operations in Mexico.
