Agility completes freight forwarding unit sale to DSV
Agility, a supply chain services, innovation and investment major, has completed the $4.6 billion sale of its freight forwarding unit Global Integrated Logistics (GIL) to DSV Panalpina.
The all-shares transaction gives Agility 19,304,348 DSV shares upon full completion of the deal in all jurisdictions, representing approximately 8 percent of all post-transaction shares of DSV. This makes Agility the second largest DSV shareholder based on today’s shareholder register, the company said in its statement.
The enterprise value of the transaction unveiled earlier in April this year has come in at $4.775 billion and the equity value is $4.675 billion.
“We’ve shown that Agility knows how to build and scale successful businesses. This deal affirms Agility’s global strategy and execution, and positions us for a new era of growth,” said Tarek Sultan, Agility vice chairman and CEO.
“We’re moving forward with a strategic investment in DSV, one of the world’s best-performing logistics providers. We will accelerate growth in the businesses we continue to operate, which historically account for around 80 percent of our EBIT. And 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.”
Sultan said Agility’s next phase of growth will create additional shareholder value. “In the last decade, Agility created almost $7 billion in value for shareholders, increasing it five fold since 2011. We are determined to sustain this momentum going forward.”
In addition to its stake in DSV, Agility receives a seat on the DSV board of directors. “This is a chance for us to share ideas and find areas where we can collaborate with a visionary DSV leadership team that, like us, is determined to shape the supply chains of the future,” Sultan said.
With the acquisition of GIL, DSV becomes a global top-three player in the freight forwarding industry with an expected combined revenue of roughly $26 billion and 75,000 employees worldwide.
Jens Bjørn Andersen, Group CEO of DSV Panalpina, said: “I am very pleased to welcome our new colleagues from GIL on this important day. 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. 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.”