en English

DSV Panalpina to acquire Agility’s Global Integrated Logistics Business

Reading Time: 2 minutes

Agility and DSV Panalpina have today signed an agreement for DSV to acquire Agility’s Global Integrated Logistics (GIL) business. The combination is expected to create a top-three global freight forwarder based on revenues. The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021. Agility will become the second-largest shareholder in DSV with an approximate 8% stake in the combined company.

Agility and DSV have reached an agreement that DSV will acquire Agility’s stand-alone Global Integrated Logistics business in an all-share transaction. DSV will issue 19,304,348 shares, representing approximately 8.0% of all post-transaction outstanding shares of DSV. Based on the DSV share closing price of DKK 1,299.5, and an exchange rate of DKK 1.00 = USD 0.163 and KWD = 0.049, the all-share transaction has an implied equity value of GIL of USD 4.1 billion (KWD 1.2 billion).

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 USD 22 billion and a combined workforce of more than 70,000 employees.

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.”

~ Tarek Sultan, Agility’s Vice-Chairman

He added: “Agility will be exploring opportunities between DSV and its other businesses, with promising areas of future cooperation potentially including Agility’s Logistics Parks business, Shipa group of companies, and technology ventures. Agility will remain an emerging markets leader, investor in emerging technologies, and champion of sustainable business.”  

Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite.”

~ Jens Bjørn Andersen, Group CEO of DSV

Scale remains one of the key competitive advantages in freight forwarding with significant operational and commercial benefits. The combined company will have own operations in more than 90 countries, with expected volumes of more than 2.8 million containers (TEU’s) and more than 1.6 million tonnes of air freight transported yearly.

“This deal is one of the largest private M&A deals made in the GCC to date. We expect that this transaction will have a positive impact on shareholder’s equity and the company’s market value,” Sultan said. “It will give Agility the resources and flexibility to explore new opportunities and reposition the company for the next phase of growth.”

Leave a Reply

Your email address will not be published.

LATEST NEWS