DSV Panalpina’s $4.2bn Acquisition of Agility GIL

By Lucy Chen (University of Melbourne), Alexander Bergmüller, Friedrich von Storch, Haozhe (James) Huang (IE Business School)


Overview of the deal

Acquirer: DSV Panalpina

Target: Agility Global Integrated Logistics

Total Transaction Size: $4.2 billion

Announcement Date: 27th April 2021

Expected Close Date: Q3 2021

Danish transport and logistics company DSV Panalpina has announced its agreement to acquire Kuwait-based Agility’s stand-alone Global Integrated Logistics (GIL) business in an all-share transaction. Under the terms of the transaction, DSV will acquire 100% of GIL in consideration by issuing 19.3 million new shares of 1 Danish crown per share to Agility, representing approximately 8% of shares in DSV.

Having recently completed the integration of its largest acquisition, the Swiss Panalpina, the acquisition of GIL will make DSV the world’s third-largest freight forwarder based on estimated revenues of $22 billion. The deal will result in a combined workforce of more than 70,000 employees and operations in more than 90 countries. It is expected to offer added capacity and scale in the fragmented forwarding industry, boosting DSV’s standing as a leading global freight transportation and logistics provider. The complimentary global network of both companies and similarities in business models and strategies also provide the ability to generate significant synergies and leverage vast operational and commercial benefits.

DSV has been known for its acquisitive strategy and has demonstrated its ability to successfully integrate companies with similar models – most recently Panalpina in 2019 and UTi Worldwide in 2015. There are however integration risks expected with the acquisition of Agility’s logistics arm. Additionally, the freight transport market remains highly fragmented, with the acquisition to provide DSV with an extra 5% in global market share.

“GIL’s global network, industry competencies and strong market position in APAC and the Middle East complement DSV’s network well and support our long-term value creation ambitions” - Jens Bjørn Andersen, Group CEO (DSV Panalpina)

Company Details: (Acquirer - DSV Panalpina)

DSV Panalpina is a global transport and logistics services provider servicing companies of all sizes. It offers road, marine and air transport services, as well as warehousing, purchase order management and other logistic solutions. The company is organised into three divisions to support customers’ entire supply chain: Air & Sea, Road and Solutions (warehousing and logistics). In 2020, DSV Panalpina generated revenues of approximately $17.7 billion.

Founded in 1976, headquartered in Hedehusene, Denmark

CEO: Jens Bjørn Andersen

Number of employees: 56,000

Market Cap: 324.9B (as of 21/05/2021)

EV: 324.5B

LTM Revenue: 115.93B


LTM EV/Revenue: 2.81x


* Currency in DKK

Company Details: (Target - Agility)

Agility’s Global Integrated Logistics (GIL) business is the stand-alone global logistics unit of Agility Public Warehousing Company, one of the world’s top freight forwarding and contract logistics providers. GIL is a transport and logistics provider offering services across 100+ countries around the world, with a strong footprint in emerging markets. It offers a mix of integrated logistics services, including air, ocean and road freight forwarding services, contract logistics and specialised logistics capabilities. In 2020, GIL reported revenues of USD 4.0 billion and adjusted EBITDA of USD 257 million.

Founded in1979, headquartered in Sulaibiya, Kuwait

CEO: Tarek Sultan

Number of employees: 27,870

Market Cap: 2.08B (as of 21/05/2021)

EV: 2.17B

LTM Revenue: 1.62B


LTM EV/Revenue: 1.34x