- DSV Panalpina buys Agility unit Global Integrated Logistics for $4.2B
- The acquisition makes DSV Panalpina the world’s third-largest transport and logistics company
- DSV Panalpina and GIL expect to close the transaction in the third quarter of 2021 provided conditions are met
DSV Panalpina is now the world’s third-largest transport and logistics company after it acquired Agility Global Integrated Logistics (GIL) for US$4.2 billion.
With the acquisition, DSV Panalpina will have a combined pro forma revenue of approximately DKK 142 billion (around US$22 billion) – an increase of around 23% – and a combined workforce of more than 70,000, the company said in a media statement.
The acquisition comes two years after Danish transport and logistics company DSV bought Swiss-based Panalpina.
DSV Panalpina and GIL expect to close the transaction in the third quarter of 2021 provided conditions are met and necessary approvals obtained, the statement added.
Until then, DSV Panalpina and GIL will operate independently.
GIL reported revenues of $4 billion in 2020, mainly related to air and sea freight.
DSV Panalpina said its largest division, Air & Sea-division, will be substantially strengthened with the acquisition of GIL and will consolidate the rank among the largest providers globally with close to 2.8 million containers (TEUs) and more than 1.6 million tonnes of air freight transported annually.
The contract logistics capabilities, which are increasingly important due to complex supply chains and changing distribution channels, will strengthen DSV’s Solutions division with GIL’s additional warehousing capacity of more than 1.4 million square metres, mainly in the Asia Pacific and the Middle East, DSV Panalpina said.
In addition, GIL will add road freight activities to DSV’s network in both Europe and the Middle East and increase DSV’s competitiveness across all three divisions.
“GIL and DSV are an excellent match, and we are proud that we can announce our agreement to join forces. The combination of our two global networks will provide us with the opportunity to offer our customers an even higher service level. GIL’s strong market position in APAC and the Middle East complements DSV’s network well and will support our long-term value creation ambitions. Our two groups already share a culture of entrepreneurship and local ownership, and we look forward to welcoming GIL’s talented staff to DSV,” said Group CEO of DSV Panalpina, Jens Bjørn Andersen.
DSV has long been known for its acquisition strategy and has proved successful in both acquiring and integrating companies, most recently Swiss Panalpina in 2019 and American UTi Worldwide in 2015.