Logistics giant DSV Panalpina is buying Global Integrated Logistics (GIL), the freight forwarding and contract logistics division of Agility Logistics. The latest acquisition positions DSV as one of the top three transport and logistics providers globally.
Having met the necessary conditions and requirements, and subject to regulatory clearances for the takeover, the two organisations will be merged in a country-by-country process, according to DSV.
“We’ve shown that Agility knows how to build and scale successful businesses. This deal affirms Agility’s global strategy and execution, and positions us for a new era of growth,” said Tarek Sultan, vice-chairman and CEO of Agility.
DSV said the acquisition would build on its presence in Asia Pacific and the Middle East, and that GIL’s warehousing capacity would be a strong addition to the DSV Solutions division, which manages contract logistics services for a range of industries including automotive. The DSV Solutions business operates 6m sq.m of logistics facilities and the GIL acquisition will add another 1.4m sq.m to that footprint.
Air and sea freight is also a major contributor to GIL’s $4.6 billion annual revenue, which fits well with the DSV Air & Sea division. DSV Road also stands to benefit from GIL’s freight activities in the Middle East and Europe, according to the company.
“By adding the GIL network and competencies to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road and Solutions,” said DSV’s CEO, Jens Bjørn Andersen. “This brings commercial synergies and cross-selling opportunities, while at the same time providing our customers with an even higher service level and a one-stop-shop for logistics needs.”
With the acquisition of GIL, DSV will have more than 75,000 employees in 90+ countries.
Other recent acquisitions completed or underway include Prime Cargo and Globeflight.