DSV acquires Agility

Today (27APR21), Denmark-based DSV Panalpina announced its acquisition of Kuwait-headquartered Agility’s Global Integrated Logistics Business (GIL) for US$4.1 billion (€3.31 billion).
This renders it the world’s third largest logistics company after Deutsche Post/DHL and Kuehne+Nagel. The deal comes less than two years after the Danish transport company bought Swiss competitor
Panalpina for US$6.01 billion (€4.96 billion).

On way to DSV  -  courtesy Agility
On way to DSV – courtesy Agility


Agility becomes second largest shareholder in DSV
Denmark is a small dot on the global map, but home to logistics powerhouses such as the shipping line AP Moeller-Maersk, and transport giant DSV. Now the country or, more precisely, the
Copenhagen-based transport company originally founded in 1976 under the name “De Sammensluttede Vognmænd” (The Consolidated Hauliers) is once
again in the focus of transport analysts. This, because the combination of DSV and GIL will fortify DSV’s position as a leading global transport and logistics company, with a combined pro forma
revenue of approximately DKK 142 billion (€19.1 bn), and a combined workforce of more than 70,000 staff. At the same time, the move puts pressure on DPDHL and K+N to also expand their empires by
starting a purchasing spree to defend their leading positions and stave off aggressively growing DSV.
Under the deal, DSV Panalpina will transfer 19.3 million new shares worth 1 Danish krone each to Agility, representing around 8% of its shares, thus making the Arabian company the second largest
shareholder in DSV.

Air & Ocean business will be strengthened
DSV has a track record of successful acquisitions which are an integral part of the Copenhagen-based company’s DNA. Following the integration, GIL is expected to increase DSV’s annual revenue by
an estimated 23%. The combined company will be represented and offer its service portfolio to customers in 90+ countries.
Market analysts expect that the Air & Sea division will be strengthened, cementing its position as one of the world’s largest providers, with more than 2.8 million containers (TEUs) and over
1.6 million tons of air freight processed annually. GIL’s presence in the fast-growing emerging markets in APAC as well as in Europe and the Americas, will be a strong addition to DSV’s existing
network. GIL will bring additional warehousing capacity of more than 1.4 million square meters, mainly in APAC and the Middle East, and thereby significantly reinforce the Solutions division. In
addition, its road activities will strengthen DSV’s network particularly in the Middle East.

Will DPDHL and K&N keep on turning the consolidation wheel?
Jens Bjoern Andersen, Group CEO of DSV, comments:
Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite. The combination of our two global networks will
provide us with the opportunity to offer our customers an even higher service level. GIL’s global network, industry competencies, and strong market position in APAC and the Middle East,
complement DSV’s network well and will support our long-term value creation ambitions. Our two groups of companies already share a culture of entrepreneurship and local ownership, and we look
forward to welcoming GIL’s talented staff to DSV.

Tarek Sultan, Vice-Chairman, Agility, states:
This deal creates significant shareholder value and marks a new milestone in Agility’s journey. Agility remains committed to the supply chain industry and will become the second largest
shareholder in one of the fastest growing and most profitable logistics companies in the world. I want to thank GIL’s leadership and employees for profitably growing the company and steering it
through one of the most challenging periods the industry has ever seen during the global pandemic. Agility is proud of what GIL has achieved.

DSV expects the Agility unit to be fully integrated around a year after the transaction closes in the third quarter. It will be interesting to see how K+N and Deutsche Post/ DHL will react to
DSV’s move.

Heiner Siegmund


We always welcome your comments to our articles. However, we can only publish them when the sender name is authentic.

Source: Cargoforwarder

Be the first to comment on "DSV acquires Agility"

Geef een reactie

Het e-mailadres wordt niet gepubliceerd. Vereiste velden zijn gemarkeerd met *