DSV Panalpina A/S formally takes over Global Integrated Logistics business from Kuwait-based Agility
The transaction’s enterprise value is approximately DKK 30.2 billion (about US$4.8 billion)
The combined workforce will be 75,000 employees in more than 90 countries
Agility becomes the second-largest DSV shareholder based on today’s shareholder register after the transaction
DSV Panalpina A/S is formally taking over Global Integrated Logistics business (GIL) from Kuwait-based Agility, after all conditions for the acquisition have been met.
“I am very pleased to welcome our new colleagues from GIL on this important day. There are many similarities when you look at our two companies both in terms of the business models and services and, not least, when we look at our shared focus on local empowerment and putting customers first. DSV and GIL simply constitute an excellent match. We will now start the integration, and, together, we are going to grow the business and bring even more value to our many customers, partners and shareholders than we do separately,” said Jens Bjørn Andersen, Group CEO, DSV.
The transaction’s enterprise value is approximately DKK 30.2 billion (about US$4.8 billion) and the equity value approximately DKK 29.6 billion ($4.7 billion). The combination of DSV and GIL will have an expected combined pro forma revenue of about DKK 160 billion ($25.4 billion, based on last 12 months) and a combined workforce of 75,000 employees in more than 90 countries.
As consideration for all shares of GIL, Agility received DSV shares representing approximately 8% of all post-transaction outstanding shares of DSV. This will make Agility the second largest DSV shareholder based on today’s shareholder register. After completion of the transaction, DSV has agreed to nominate an Agility representative to DSV’s Board of Directors.
GIL has an annual revenue of DKK 29 billion (about US$ 4.6 billion) with Air & Sea freight as the main contributor. This will be added to DSV’s existing global network.
Moreover, the inclusion of GIL is building on DSV’s presence in both APAC and the Middle East. With 1.4 million square meters of warehousing capacity, GIL will be a strong addition to DSV Solutions, while the road freight activities in Europe and the Middle East will strengthen the DSV Road network.
“By adding the GIL network and competencies to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road and Solutions. This brings commercial synergies and cross-selling opportunities while at the same time providing our customers with an even higher service level and a one-stop-shop for logistics needs,” said Andersen.
DSV’s acquisition strategy has included acquiring and integrating Swiss Panalpina in 2019 and American UTi Worldwide in 2016.
Panalpina and GIL will be merged in a country-by-country process, which means that for customers and employees in many countries the coming period will be business as usual until the country-specific merger process is initiated.
Despite the expected completion of the transaction, regulatory clearances are pending in a limited number of jurisdictions where revenues individually and combined are insignificant compared to the combined post-completion revenue.