Danish transport and logistics company DSV Panalpina has agreed to acquire the Kuwait-based Agility’s logistics division Global Integrated Logistics (GIL) in an all-share agreement worth $4.1 billion.
According to the company, the acquisition comes in less than two years after DSV bought Swiss logistics group Panalpina for $1.7 billion (37 billion crowns), and it will cement DSV’s position among the world’s largest freight-forwarding companies, including DHL Logistics, Kuehne & Nagel, and DB Schenker.
Last year, Agility’s logistics unit has generated $4 billion in revenue, with 80 percent of that coming from air and freight, and employed approximately 17,000 people.
Under the terms of the agreement, DSV Panalpina will transfer to Agility 19.3 million new shares worth $0.16 (1 Danish crown) each, representing approximately 8 percent of its shares. Agility will become the second-largest shareholder in DSV, when the transaction closes, which is expected in the third quarter.
“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.”
”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,” commented Tarek Sultan, Vice-Chairman at Agility.