Kuwait’s Agility and Danish firm DSV Panalpina to create ‘Top 3 global freight forwarder’

Agility will be quite taken up with the new deal. Earlier this month, it dropped plans to launch an IPO for Tristar, a Dubai based logistics firm in which it has a sizable share.
Image Credit: Antonin Kélian Kallouche/Gulf News

Dubai: Kuwait’s warehousing and supply chain company Agility is selling its Global Integrated Logistics (GIL) subsidiary to DSV Panalpina, a Danish company.

This will result in the new entity becoming a Top 3 global freight forwarding business, based on revenues. The acquisition will be an all-share transaction and closing is expected in the third quarter of this year. Agility will become the second largest shareholder in DSV with an approximate 8 per cent stake in the combined company.

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 $22 billion and a combined workforce of more than 70,000 employees”.

“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 pandemic.”

How the deal will shape up

On completion, DSV will acquire 100 per cent of GIL through issuing 19.304 million new shares at 1 kroner a share to Agility. This will represent around 8 per centof all post-transaction outstanding shares in DSV. 

This represents an enterprise value of around $4.2 billion and equity value of $4.1 billion. (The transaction is subject to receipt of antitrust and regulatory approvals and approval by Agility’s shareholders.)

Jens Bjørn Andersen, Group CEO of DSV, said: “GIL’s global network, industry competencies and strong market position in Asia-Pacific and the Middle East complement DSV’s network well.”