SOUTH AFRICA – DSV Panalpina, a Danish transport and logistics company, has completed the acquisition of South African-based Globeflight Worldwide Express after the relevant competition authorities have approved the details in the agreement.
The deal was initially announced in December 2020.
The acquisition includes all Globeflight’s operations in South Africa and Swaziland and will immediately be able to fortify DSV Panalpina’s presence in the small express parcel courier sector.
The acquisition is consistent with DSV Panalpina’s global strategy of growth through acquisitions while at the same time being a strategically important step for DSV Panalpina to serve customers in the growing express and small parcel market in South Africa.
“The acquisition of Globeflight constitutes a great match for DSV in South Africa while at the same time tapping into our global M&A strategy. Both have a culture that is performance-driven and customer-centric and the client fit is complementary and provides room to grow. DSV Panalpina’s courier business typically centres on larger clients, while Globeflight’s strength is in the express and small parcel market with a particular emphasis in the critical B2B market,” said Keith Pienaar, CEO, DSV Africa.
The transaction reflects DSV Panalpina’s huge confidence in and commitment to South Africa.
It both coincides with the substantial investments in infrastructure and transport management systems which enable increases in productivity and efficiency and the investments the group is making in building large-scale logistics facilities in Gauteng and the Western Cape.
“The acquisition of Globeflight constitutes a great match for DSV in South Africa while at the same time tapping into our global M&A strategy”
Keith Pienaar – CEO, DSV Africa
“Together with our new colleagues from Globeflight, we enable further growth for the combined entity while we continue to strengthen our services in and commitment to South Africa. Therefore, I am incredibly pleased to be able to welcome the Globeflight organization to DSV Panalpina,” said Keith Pienaar.
The combined business will have approximately 4,000 employees serving approx. 12,000 customers across Southern Africa.
After the acquisition, it is expected that more than 11 million courier shipments per year will be moved, which represents an increase of 30 percent in volumes for DSV Panalpina in South Africa.
In April 2021, the transport and logistics company announced it was now eyeing a larger acquisition of Agility Global Integrated Logistics (GIL) with a value of US$4.1 billion.
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.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE
