DSV Panalpina A/S (DSV) is buying Agility’s Global Integrated Logistics (GIL) business.The all-shares deal will be worth US$4.2 billion and is expected to close in the third quarter of 2021. Agility will become the second largest shareholder in DSV with an approximate 8% stake in the combined company.
According to research firm Transport Intelligence (Ti), the acquisition will make DSV the largest forwarder in the world by revenue, ahead of Kuehne + Nagel and DHL. DSV estimates the combined revenue will be approximately $22 billion and the company will have a workforce of more than 70,000 employees.
“Further consolidation in the freight forwarding market is hardly unexpected and the purchase of Agility Integrated Logistics by DSV Panalpina must be put in the context of two decades of intense acquisition activity,” said Ti CEO, John Manners-Bell in an analysis of the deal.
“Agility itself has been made up of over 40 deals as forwarders pursue strategies that allow them to build strength and depth on a worldwide basis, not least giving them buying power over shipping and airlines…DSV’s management has shown time and again that they have discovered the formula to integrate and even turn around the most challenged of companies. I expect the same in this case, as DSV becomes an even bigger rival to DHL Global Forwarding and Kuehne + Nagel on many key trade routes and sectors.”
Additional opportunities
According to Tarek Sultan, Agility’s vice-chairman, Agility will be exploring additional opportunities between DSV and its other businesses. Future areas for cooperation may include Agility’s Logistics Parks business, Shipa group of companies, and technology ventures.
The combination of DSV and Agility GIL is expected to increase DSV’s annual revenue by approximately 23 percent. The combined company will have own operations in more than 90 countries, with expected volumes of more than 2.8 million containers (TEU’s) and more than 1.6 million tonnes of air freight transported yearly.
“Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite,” said Jens Bjørn Andersen, Group CEO of DSV.
“GIL’s presence in fast-growing emerging markets in APAC, as well as Europe and Americas, will be a strong addition to DSV’s existing network.”
GIL will bring additional warehousing capacity of more than 1.4 millions square meters across the Middle East and Asia, significantly strengthening DSV’s contract logistics capabilities and Solutions division. GIL will also add road freight activities to DSV’s network in Europe and the Middle East.
Not part of the deal is Agility’s Logistics Parks business that develops warehousing and light-industrial infrastructure, and its portfolio of subsidiary companies, covering fuel logistics, commercial real estate, airport services, customs digitization, and digital logistics, among others. Agility will continue to invest in emerging technologies and companies and remains committed to sustainability across its operations and the companies it invests in.
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