Danish logistics giant DSV to acquire UTi Worldwide
DSV GROUP’S board of directors has unanimously approved the acquisition of USA-headquartered global supply chain services and logistics company UTi Worldwide, for $1.35bn.
The California-based firm’s freight forwarding and contract logistics distribution sectors recorded revenues of more than $2.5bn and $1.4bn, respectively in the last 12 months ending 31 July.
The combined new company will be one of the world’s strongest transport and logistics networks, with a footprint earning some 61 per cent of revenue from Europe, the Middle East and North Africa, 17 per cent in the Americas, 16 per cent in Asia (APAC) and six per cent in sub-Saharan Africa, reveals a DSV company statement.
Kurt K Larsen, chairman of the DSV board, comments: “Together, we will be even stronger and able to capitalise on business synergies as well as a greater global reach to the benefit of shareholders, customers and employees.
“We look forward to joining forces and welcoming our new colleagues from UTi to DSV.”
Roger MacFarlane, chairman of the Bboard of UTi, adds: “We are operating in an industry where increasingly scale is critical. Joining forces with DSV delivers substantially greater client value and many future opportunities for our people while it is financially very attractive for our shareholders.”
The transaction is subject to obtaining the approval of the UTi shareholders and receipt of the relevant regulatory approvals – closing is expected in first quarter 2016.
“Acquisitions are an integral part of DSV’s growth strategy and we have a strong track record of successful integration of acquired companies,” adds the company statement.
“The acquisition of UTi is expected to increase DSV’s annual revenue by approximately 50 per cent, creating one of the world’s strongest transport and logistics networks.”
Both air and surface divisions will be significantly strengthened by the deal.
“DSV will now be truly global within contract logistics and expand into road freight activities outside Europe. This will enable the company to offer its customers a broader range of services,” the statement concludes.