Kuwait’s Agility completes sale of its logistics unit to DSV Panalpina

By Amirtha P S, Desk Reporter
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Kuwaiti-based logistics company Agility expects to complete the sale of its Global Integrated Logistics (GIL) business to Danish transport and logistics company DSV Panalpina in an all-share deal with an enterprise value of $4.77 billion.

The deal gives Agility 19.3 million shares in DSV, once the transaction is completed in all jurisdictions. The all-share deal will see Agility gain 8 percent of the total shares in the combined entity making it DSV Panalpina’s second-largest shareholder.

Tarek Sultan
Tarek Sultan

“This deal affirms Agility’s global strategy and execution and positions us for a new era of growth. We’re moving forward with a strategic investment in DSV, one of the world’s best-performing logistics providers. We will accelerate growth in the businesses we continue to operate, which historically account for around 80 percent of our EBIT (earnings before interest and taxes).”

The global logistics sector is recovering from the devastating impact of the COVID-19, which disrupted trade flows and supply chains. Last month, the International Monetary Fund raised its global trade growth forecast to 9.7 percent this year and 7 percent in 2022 after it shrunk by 8.3 percent in 2020.

According to the company statement, the regulatory clearances on the deal are pending in a limited number of jurisdictions, which are not material in the context of the overall size of the transaction. 

In addition to its stake in DSV, Agility receives a seat on the DSV board of directors. The acquisition of Agility’s GIL makes DSV the world’s third-largest freight forwarding company, with expected combined revenue of roughly $26 billion and 75,000 employees worldwide.

Mr. Jens Bjorn Andersen, group chief executive of DSV Panalpina, said, “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.”

Agility’s next phase of growth will create additional shareholder value, Mr. Sultan added, “Our future will be built around businesses, technology and investment that expand access to global trade and make supply chains faster, smarter, greener, fairer and more efficient and resilient.”

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