Agility and DSV Panalpina, Danish transport and logistics firm, signed an agreement for the later to acquire Agility’s Global Integrated Logistics (GIL) platform. The combination is expected to create a top-three global freight forwarder based on revenues.
The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021. Agility will become the second largest shareholder in DSV with an approximate 8% stake in the combined company.
Agility and DSV have reached an agreement that DSV will acquire Agility’s stand-alone GIL business in an all-share transaction. DSV will issue 19,304,348 shares, representing approximately 8.0% of all post-transaction outstanding shares of DSV.
Based on the DSV share closing price of DKK1,299.5 (Dhs775), and an exchange rate of DKK1.00 = USD0.16, the all-share transaction has an implied equity value of GIL of USD4.1 billion.
The combination of DSV and GIL will fortify DSV’s position as a leading global transport and logistics company with a combined pro forma revenue of approximately USD22 billion and a combined workforce of more than 70,000 employees.
“This deal creates significant shareholder value and marks a new milestone in Agility’s journey. Agility remains committed to the supply chain industry and will become the second largest shareholder in one of the fastest-growing and most profitable logistics companies in the world,” said Tarek Sultan, Agility’s Vice-Chairman.
“I want to thank GIL’s leadership and employees for profitably growing the company and steering it through one of the most challenging periods the industry has ever seen during the global pandemic. Agility is proud of what GIL has achieved.”
Scale remains one of the key competitive advantages in freight forwarding with significant operational and commercial benefits.
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.
GIL will bring additional warehousing capacity of more than 1.4 million sqm 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 digitisation, 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.