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DSV to buy Agility

[ April 27, 2021   //   ]

DSV Panalpina is to buy Agility’s Global Integrated Logistics (GIL) arm for US$4.2 billion (DKK 26bn) its largest acquisition to date. Described by the Danish-owned company as one of the world’s top freight forwarding and contract logistics providers in 2020, Agility had revenues of $4 billion, mainly air and sea freight and a workforce of about 17,000.
It follows DSV’s previous largest acquisition to date, Swiss-based Panalpina which it bought two years ago. Integration of Agility’s activities into the company will make DSV Panalpina the world’s third largest transport and logistics company with a combined revenue of about $22bn (DKK 142bn) – an increase of around 23% – and a combined workforce of over 70,000.
DSV Panalpina added that its Air & Sea-division, already its largest, will be substantially strengthened with the acquisition of Agility’s interests and consolidate it as one of the largest global forwarders with close on 2.8m teu and over 1.6m tonnes of air freight a year. The contract logistics capabilities, which are increasingly important due to complex supply chains and changing distribution channels, will add more than 1.4m sq m to DSV’s Solutions division, mainly in Asia Pacific and Middle East. It will also increase road freight in Europe and the Middle East.
DSV said GIL was a strong match “with valuable synergies as a result of similarities in both business models, services and strategies.
DSV Panalpina group chief executive Jens Bjørn Andersen, commented: “The combination of our two global networks will provide us with the opportunity to offer our customers an even higher service level. GIL’s strong market position in APAC and the Middle East complements DSV’s network well and will support our long-term value creation ambitions. Our two groups already share a culture of entrepreneurship and local ownership, and we look forward to welcoming GIL’s talented staff to DSV.”
Previous DSV purchases also include US-based UTi Worldwide in 2015.
The two companies expect to close the transaction in the third quarter of the year provided conditions are met and necessary approvals are obtained. Until then, DSV Panalpina and GIL will continue to operate independently.

Agility will retain control of its Infrastructure arm.

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