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DSV to become world’s largest forwarder with Agility acquisition
[ April 29, 2021 // Gary G Burrows ]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 DKK 1,299.5, and an exchange rate of DKK 1.00 = USD 0.163 and KWD = 0.049, the all-share transaction has an implied equity value of GIL of USD 4.1 billion (KWD 1.2 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 USD 22 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.”
He added: “Agility will be exploring opportunities between DSV and its other businesses, with promising areas of future cooperation potentially including Agility’s Logistics Parks business, Shipa group of companies, and technology ventures. Agility will remain an emerging markets leader, investor in emerging technologies, and champion of sustainable business.”
“Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite,” said Jens Bjørn Andersen, Group CEO of DSV. The combination of our two global networks will provide us with the opportunity to offer our customers an even higher service level. GIL’s global network, industry competencies and strong market position in APAC and the Middle East complement DSV’s network well and will support our long-term value creation ambitions. Our two groups of companies already share a culture of entrepreneurship and local ownership, and we look forward to welcoming GIL’s talented staff to DSV.”