WORLD – After the acquisition of Panalpina, a Swiss logistics company in August 2019, Denmark-based DSV Panalpina is now eyeing a larger acquisition of Agility Global Integrated Logistics (GIL) with a value of US$4.1 billion.
GIL is part of Agility and one of the top freight forwarding and contract logistics providers (3PL).
In 2020, the company generated US$4 billion in revenue, mainly related to air & sea freight and a workforce of approximately 17,000 employees.
Recently, DSV completed the integration of the company’s largest acquisition to date, Panalpina, and with the acquisition of GIL, DSV Panalpina will become the world’s third-largest transport and logistics company with a combined pro forma revenue of approximately US$22 billion, an increase of around 23 percent 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 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. This deal is one of the largest private M&A deals made in the GCC to date,” said Tarek Sultan, Agility’s vice chairman.
Not part of the deal is Agility’s Logistics Parks business that develops warehousing and light-industrial infrastructure, and its portfolio of subsidiary companies, covering fuel logistics, commercial real estate, airport services, customs digitization, and digital logistics, among others.
“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”Jens Bjørn Andersen – Group CEO, DSV Panalpina
The air and sea division, the largest division of DSV Panalpina, 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 APAC and the Middle East.
He added by saying, “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.”
Prior to Panalpina, DSV had acquired American UTi Worldwide in 2015.
DSV Panalpina and GIL expect to close the transaction in Q3 2021 provided conditions are met and necessary approvals are obtained.