Kuwait-based Agility and DSV Panalpina have signed an agreement for DSV to acquire Agility’s Global Integrated Logistics (GIL) business. The combination is expected to create a top-three global freight forwarder based on revenues.
“This deal creates significant shareholder value and marks a new milestone in Agility’s journey,” Tarek Sultan, Agility’s Vice-Chairman. “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.
He added that Agility will be exploring further opportunities between DSV and its other businesses. Promising areas of future cooperation potentially include Agility’s Logistics Parks business, Shipa group of companies and technology ventures.
Agility’s Global Integrated Logistics business and DSV are considered by both companies to be an excellent match. According to Jens Bjørn Andersen, Group CEO of DSV. “GIL’s global network, industry competencies and strong market position in APAC and the Middle East complement our network well.”
The combined company will have operations in more than 90 countries, with expected shipping volumes of more than 2.8 million containers in TEU terms and more than 1.6 million tonnes of air freight transported yearly. GIL will also add road freight activities to DSV’s network in Europe and the Middle East.
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.