Agility sells freight-forwarding arm to Denmark's DSV Panalpina
All-share deal values unit at $4.1bn and gives Agility 8% stake in Danish company
Kuwait logistics company Agility sold its Global Integrated Logistics arm on Tuesday to Denmark's DSV Panalpina.
GIL, which offers freight forwarding and contract logistics services, is being sold for newly issued shares in the Danish company.
It values GIL at about $4.1bn and will mean Agility becomes the second-largest shareholder in DSV, with an 8 per cent stake.
“This deal creates significant shareholder value and marks a new milestone in Agility’s journey," said Tarek Sultan, Agility’s vice chairman.
"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.”
DSV's acquisition of GIL is expected to increase its revenue by about 23 per cent, making it one of the top three freight forwarders in the world.
The combined entity will have a revenue of more than $22bn and employ more than 70,000 people in over 90 countries.
It will handle about 2.8 million containers and more than 1.6 million tonnes of air freight a year.
“GIL’s presence in fast-growing emerging markets in [Asia-Pacific], as well as Europe and the Americas, will be a strong addition to DSV’s existing network,” said the company's chief executive, Jens Bjorn Andersen.
"GIL will bring additional warehousing capacity of more than 1.4 millions square metres across the Middle East and Asia, significantly strengthening DSV’s contract logistics capabilities.
"GIL will also add road freight activities to DSV’s network in Europe and the Middle East."
The deal also represents "one of the largest private deals made in the GCC to date", Agility's Mr Sultan said.
“It will give Agility the resources and flexibility to explore new opportunities and reposition the company for the next phase of growth.”
The value of mergers in the Middle East and North Africa rose to $17.1bn in the first three months of this year, up 19 per cent on the same period last year, according to Refinitiv.
Published: April 27, 2021 11:01 PM