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DSV completes UTi acquisition
[ January 22, 2016 // Chris ]Danish forwarder DSV has completed its acquisition of US-owned UTi, first announced in October last year. As previously announced, the deal was worth around US$1.35 billion.
California-headquartered UTi is described by DSV as “a global, asset-light supply chain services and logistics company” with estimated annual revenue of $3.5 billion, offering air, ocean, distribution, customs brokerage and contract logistics. Adding the US company’s 21,000 employees in 58 countries would create one the world’s strongest transport and logistics networks, predicted DSV.
Chief executive of the Danish firm, Jens Bjørn Andersen commented: “The combination of the two companies is a recipe for success; and with our united network, we will create exciting opportunities for both customers and employees. We will now commence the integration process while taking care to maintain a high service level towards all customers. As we move forward, the commercial activities of DSV and UTi will continue under the DSV brand.”
When announcing the planned acquisition in October, DSV said it would considerably strengthen its air and sea division and would turn it into a truly global operator in contract logistics, while allowing it to expand into road freight activities outside Europe. The combined companies will have a more balanced geographical footprint with approximately 61% of revenue in Europe, Middle East and North Africa, 17% in Americas, 16% in Asia (APAC) and 6% in Sub-Saharan Africa.