DSV Panalpina signs agreement to acquire Agility’s Global Integrated Logistics business (GIL) worth $4.2 billion. The acquisition will place DSV Panalpina as one of the top three largest freight forwarders in the world.
In 2020, GIL had USD 4.0 billion in revenue, of which approximately 80 per cent is related to Air & Ocean freight, and approximately 17,000 employees. The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021.
DSV says the combination with GIL is expected to increase its annual revenue by approximately 23 per cent, which will rank the combined company in the freight forwarding industry top three with a pro forma revenue of approximately USD 22 billion (DKK 142 billion) and a combined workforce of more than 70,000 employees. The combined company will have its own operations in more than 90 countries.
Jens Bjørn 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, comments: ”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.”
Sultan adds that Agility will be exploring opportunities between DSV and its other businesses, with promising areas of future cooperation potentially including Agility’s Logistics Parks business, its Shipa group of companies and technology ventures.
“Agility will remain an emerging markets leader, investor in emerging technologies and champion of sustainable and responsible business,” he adds.
DSV notes that “scale remains one of the key competitive advantages in freight forwarding with significant operational and commercial benefits.”
The Air & 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 (TEUs) and more than 1.6 million tonnes of air freight transported annually.
GIL’s presence in the fast-growing emerging markets in 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.
GIL will also add Road Freight activities to DSV’s network in Europe and the Middle East.
Completion of the transaction is expected in the third quarter of 2021 with the transaction subject to regulatory approvals and approval by Agility’s shareholders (simple majority required).