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May 03 2021

DSV to Buy Agility’s Logistics Unit for $4.1 Billion

DSV Panalpina A/S agreed to buy Agility Public Warehousing Co.’s Global Integrated Logistics business for $4.1 billion, extending its reach in the air and sea transport industry.

 

The all-share transaction means DSV will issue just over 19 million shares to Agility, or about 8% of the Danish company’s total stock once the deal is completed. Kuwait-based Agility will become DSV’s second-largest owner. DSV shares jumped as much as 10%, the most in 13 months.

 

The integration of GIL may be completed by the end of 2022, Jens Bjorn Andersen, DSV’s chief executive, said in a phone interview. The purchase will raise DSV’s global market share in the fragmented freight-forwarding industry to 4-5%, he said.

 

“In other industries it’s normal to have much larger market share, so there is probably a lot of room left to make more acquisitions,” Andersen said.

 

DSV has used takeovers to propel its rapid expansion since the 1970s. The Agility deal means DSV will be the world’s third-largest freight forwarder behind Deutsche Post AG’s DHL and Kuehne + Nagel International AG, moving from the fourth spot. Read more

 

Source: TRANSPORT TOPICS