DSV PANALPINA is acquiring Agility Global Integrated Logistics in a deal worth US$4.2 billion.
Global Integrated Logistics is part of Agility and one of the world’s top freight forwarding and contract logistics providers. In 2020, the company had US$4 billion in revenue, mainly related to air and sea freight and a workforce of approximately 17,000 employees.
DSV recently completed the integration of the company’s largest acquisition to date, the Swiss Panalpina. With the acquisition of GIL, DSV Panalpina said it would become the world’s third-largest transport and logistics company with a combined pro forma revenue of approximately DKK142 billion (about US$22 billion) – an increase of around 23% – and a combined workforce of more than 70,000 employees.
The air and sea division, the largest division of DSV Panalpina, will be substantially strengthened with the acquisition of GIL and will consolidate the rank among the largest providers globally with close to 2.8 million TEU and more than 1.6 million tonnes of air freight transported annually.
The contract logistics capabilities, which are increasingly important due to complex supply chains and changing distribution channels, will strengthen DSV’s Solutions division with GIL’s additional warehousing capacity of more than 1.4 million square metres, mainly in APAC and the Middle East. Furthermore, GIL will add road freight activities to DSV’s network in both Europe and the Middle East and thereby increase DSV’s competitiveness across all three divisions.
DSV said GIL is a strong match with valuable synergies as a result of similarities in both business models, services and strategies.
Group CEO of DSV Panalpina Jens Bjørn Andersen said there are many good reasons to join forces with the Middle Eastern transport and logistics provider.
“GIL and DSV are an excellent match, and we are proud that we can announce our agreement to join forces. The combination of our two global networks will provide us with the opportunity to offer our customers an even higher service level,” Mr Andersen said.
“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.”
DSV Panalpina and GIL expect to close the transaction in the third quarter of 2021, provided conditions are met and necessary approvals are obtained. Until then, DSV Panalpina and GIL will continue to operate separately and independently.