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DSV buys UTi
[ October 9, 2015 // Gary G Burrows ]Danish forwarder DSV is to acquire US-owned UTi, for about US$1.35 billion, or $7.10 in cash per ordinary share. Talk in the market has been circulating for some time that Uti was looking for a buyer, with DSV named as the likely suitor.
DSV says the move will considerably strengthen its air and sea division wand would turn it into a truly global operator in contract logistics and allow it to expand into road freight activities outside Europe. It adds that the combined companies will have a more balanced geographical footprint with approximately 61% of revenue in Europe, Middle East and North Africa, 17% in Americas, 16% in Asia (APAC) and 6% in Sub-Saharan Africa.
DSV board chairman Kurt Larsen, said: “We complement each other perfectly, both in terms of business activities and geography. Together, we will be even stronger and able to capitalise on business synergies as well as a greater global reach to the benefit of shareholders, customers and employees. We look forward to joining forces and welcoming our new colleagues from UTi to DSV.”
His counterpart at UTi, Roger MacFarlane, adds: “We are operating in an industry where increasingly scale is critical. Joining forces with DSV delivers substantially greater client value and many future opportunities for our people while it is financially very attractive for our shareholders. As a result, the Board of Directors of UTi has unanimously approved the agreement with DSV and strongly recommends that our shareholders accept the offer.”
DSV said UTi shareholders would gain a 50% premium compared to the closing price on 8 October. The deal is expect to close in the first quarter of 2016, subject to shareholder and regulatory approval.