Kuwait-based Agility has signed a deal to sell its Global Integrated Logistics (GIL) business to Denmark’s DSV Panalpina.
GIL is one of the world’s top freight forwarders and providers of contract logistics and offers ocean, air and road freight, warehousing and distribution, and integrated supply chain services in more than 100 countries.
The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021.
Agility will become the second largest shareholder in DSV with an approximate 8 percent stake in the combined company, a statement said.
Based on the DSV share closing price, the transaction has an implied equity value of GIL of $4.1 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 $22 billion and a combined workforce of more than 70,000 employees,” the statement added.
Tarek Sultan (pictured above), Agility’s vice-chairman, said: “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.”
He added: “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.”
Jens Bjorn Andersen, group CEO of DSV, said: “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.”
The transaction is subject to receipt of antitrust and regulatory approvals and approval by Agility’s shareholders.
After completion of the transaction, DSV has agreed to nominate an Agility designee to DSV’s board of directors.
The combined company will have own operations in more than 90 countries, with expected volumes of more than 2.8 million containers (TEUs) and more than 1.6 million tonnes of air freight transported yearly.
Follow us on
