DSV Panalpina is set to become the world’s third largest transport and logistics company as it announced the acquisition of Agility’s Global Integrated Logistics (GIL). The transaction, valued at US$4.2 billion (DKK 26 billion), is the latest acquisition of the Danish company after it bought out Swiss-based Panalpina 2 years ago.
DSV recently completed the integration with Swiss Panalpina, and with the acquisition of GIL, the company is set to become the world’s third largest with a combined pro forma revenue of around US$22 billion (approximately DKK 142 billion), up around 23 percent, and a combined workforce of more than 70,000 employees.
The Danish company said its largest division, air & sea, will be ‘substantially strengthened’ with the acquisition of GIL and will consolidate the rank amongst the largest providers globally with close to 2.8 million containers (TEUs) and more than 1.6 million tonnes of air freight transported annually. Last year, the GIL unit posted US$4 billion in revenue on the back of air & sea freight and contract logistics.
Agility’s additional warehousing capacity of more than 1.4 million square metres, mainly in Asia Pacific and the Middle East, is also expected to strengthen DSV’s supply chain division, whilst its road freight activities will further add to DSV’s network in both Europe and the Middle East.
Forwarders are expecting more mergers and consolidations happening this year as companies look to increase market leadership. In February, Kuehne+Nagel announced the acquisition of Chinese freight forwarder Apex International, its largest purchase to date, according to the Swiss company.
DSV has long been known for its acquisition strategy and has proven successful in both acquiring and integrating companies, with Swiss Panalpina in 2019 and American UTi Worldwide in 2015.
DSV Panalpina and Agility expect to close the transaction in Q3 2021 and will continue to operate separately and independently until then.