The sale of Agility’s Global Integrated Logistics (GIL) business to DSV Panalpina A/S (“DSV”) is one of the largest ever private M&A deals made in the GCC.
In a statement, the two firms agreed that the combination is expected to create a top-three global freight forwarder based on revenues.
Under the terms of the deal, Agility will become the second largest shareholder in DSV with an approximate 8% stake in the combined company.
The combination of DSV and GIL is intended to “fortify DSV’s position as a leading global transport and logistics compan”y 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.”
Sultan concluded: “This deal is one of the largest private M&A deals made in the GCC to date. We expect that this transaction will have a positive impact on shareholder’s equity and the company’s market value.
“It will give Agility the resources and flexibility to explore new opportunities and reposition the company for the next phase of growth.”
