DSV Panalpina has confirmed it expects this week to complete the previously announced agreement to acquire Agility’s Global Integrated Logistics business, the global logistics division of Agility Public Warehousing Company K.S.C.P.
The acquisition is an all-share transaction.
Global Integrated Logistics has around 17,000 employees and generates an annual revenue of USD$4.6 billion of which approximately 80 per cent is related to air and sea freight.
The combination of DSV Panalpina and Global Integrated Logistics (GIL) creates a global top-three player in the freight forwarding industry with an expected combined pro forma revenue of approximately USD$25.3 billion (based on last 12 months) and a combined workforce of more than 75,000 employees.
DSV Panalpina Group CEO Jens Bjørn Andersen extended a welcome to his new colleagues on what was a momentous occasion for the business.
“There are many similarities when you look at our two companies both in terms of the business models and services and, not least, when we look at our shared focus on local empowerment and putting customers first,” he said.
“DSV and GIL simply constitute an excellent match. 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.”
As consideration for 100 per cent of GIL, Agility receives 19,304,348 DSV shares (with a nominal value of DKK 1 per share) representing approximately 8 per cent of all post-transaction outstanding shares of DSV.
This will make Agility the second largest DSV shareholder based on today’s shareholder register, and DSV has agreed to nominate an Agility representative to DSV’s Board of Directors after completion of the transaction.
The transaction is expected to be EPS accretive (diluted and adjusted) by 2022. For full-year 2023, DSV expects the operating margin of the combined company will be lifted towards the DSV Group’s current level.
The full year impact on EBIT before special items is based on a preliminary estimate. An update will be communicated in connection with the release of DSV’s Q3 2021 interim financial report.
Despite the expected completion of the transaction this week and in line with what has been agreed, regulatory clearances are pending in a limited number of jurisdictions where revenues individually and combined are insignificant compared to the combined post-completion revenue, and in each such jurisdiction completion of the acquisition and commencement of integration activities are awaiting the relevant regulatory clearance.