[010521.EN.BIZ] DSV to Join The Rank of Top Three With Takeover of Agility GIL

 

DENMARK's logistics company DSV Panalpina is set to become a top three global forwarder as it continues its expansion through the planned acquisition of Agility Global Integrated Logistics (GIL) in a deal worth around US$4.1 billion, reports London's Air Cargo News.

The purchase is expected to increase DSV's annual revenue by around 23 per cent, which will rank the combined company as one of the top three forwarders with revenues of around $22 billion and a workforce of more than 70,000 employees.

The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021. The deal will be funded through the issue of 19.3 million new shares in DSV, which will give Agility an 8 per cent shareholding in the combined entity, making it the second largest shareholder.

DSV said that acquisitions are an integral part of its strategy and added that it has a "track record of successful integrations".

In recent years it has also purchased Panalpina and before then UTi, with integrations completed faster than first predicted. The forwarder said that scale remains one of the key competitive advantages in freight forwarding with significant operational and commercial benefits.

"The air and sea division will be strengthened and will further cement its position as one of the largest providers globally with more than 2.8 million containers (TEU) and more than 1.6 million tonnes of airfreight transported annually.

"GIL's presence in the fast-growing emerging markets in Asia Pacific (APAC) as well as Europe and Americas will be a strong addition to DSV's existing network."

"Contract logistics capabilities are increasingly important due to complex supply chains and changing distribution channels.

"GIL will bring additional warehousing capacity of more than 1.4 million square metres, mainly in APAC and the Middle East, and thereby significantly strengthen the solutions division.

"Finally, GIL will add road freight activities to DSV's network in Europe and the Middle East."

In terms of market impact, in 2020 GIL had $4 billion in revenue, of which approximately 80 per cent is related to air and ocean freight.

In 2019, DSV ranked in fifth in terms of revenues, behind Nippon Express, DB Schenker, Kuehne+Nagel and DHL Global Forwarding.

The deal will see it move above Nippon Express and DB Schenker.

Tarek Sultan, vice-chairman, Agility, added: "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."

Source : HKSG.