GLOBAL freight company DSV Panalpina is expected to finalise the purchase of Agility’s Global Integrated Logistics business for DKK 30.2-billion ($6.53 billion).

DSV said the combination of it and GIL will have an expected combined pro forma revenue of about DKK 160 billion ($34.58 billion), based on the past 12 months. The combined workforce will number 75,000 employees in more than 90 countries.

With the acquisition of GIL, DSV said it has become a global top-three player within transport and logistics and the aim is to continue to grow the business from this strong position.

DSV group CEO Jens Bjørn Andersen said he was pleased to welcome the new colleagues from GIL.

“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.”

GIL has an annual revenue of DKK 29 billion ($6.27 billion) with air and sea freight as the main contributor. This will be added to DSV’s existing global network. Moreover, the inclusion of GIL is building on DSV’s presence in both APAC and the Middle East. With 1.4 million square metres of warehousing capacity, GIL will be a strong addition to DSV Solutions, while the road freight activities in Europe and the Middle East will strengthen the DSV Road network.

Mr Andersen said by adding the GIL network and competences, DSV will improve competitiveness across all three divisions (air and sea; road; and solutions.

“This brings commercial synergies and cross-selling opportunities while at the same time providing our customers with an even higher service level and a one-stop-shop for logistics needs,” Mr Andersen said.

As consideration for 100% GIL, Agility is receiving DSV shares that represent about 8% of all post-transaction outstanding shares of DSV, making it the second largest DSV shareholder. DSV is to nominate an Agility representative to its board of directors.

Agility vice-chairman and CEO Tarek Sultan said the deal affirms Agility’s global strategy and execution.

“We’re moving forward with a strategic investment in DSV, one of the world’s best-performing logistics providers,” he said.

“[…] We will continue investing in businesses that are driving sustainable innovation in supply chain and transportation. Our future will be built around businesses, technology and investment that expand access to global trade and make supply chains faster, smarter, greener, fairer and more efficient and resilient.”

Mr Sultan said Agility’s seat on the DSV board is a chance to share ideas and find areas of collaboration.

Regulatory clearances are pending in a limited number of jurisdictions, which are not material in the context of the overall size of the transaction.