Global transport and logistics company DSV A/S said it completed the acquisition of Panalpina Welttransport (Holding) AG on August 19.
Swiss-based logistics firm Panalpina in a release said Denmark’s DSV settled August 19 the previously announced public exchange offer for all publicly held shares of Panalpina “in accordance with Swiss market practices.”
The acquisition of Panalpina creates one of the world’s largest transport and logistics companies with a pro forma revenue of about DKK118 billion (US$17.6 billion) and a workforce of 60,000 employees in 90 countries.
Jens Bjorn Andersen, CEO of DSV A/S, said: “We are very excited to welcome Panalpina’s customers, employees and shareholders to DSV. Our two companies will achieve more together, creating even more value for all our stakeholders. The settlement of the deal marks the beginning of the integration process, during which we will strive to provide the high level of service our customers know and rely on.”
Following the deal, DSV A/S will change its registered name to “DSV Panalpina A/S”. As the integration progresses, all subsidiaries and operational activities will be united under the DSV name and brand.
The announced board changes in Panalpina will also come into effect, with Kurt Kokhauge Larsen as chairman and Andersen, Jens H. Lund, and Thomas Stig Plenborg as members of the Panalpina board, giving DSV full control over Panalpina.
DSV intends to have Panalpina appoint Andersen and Lund as CEO and CFO, respectively, of Panalpina, to take over from Stefan Karlen and Robert Erni, respectively.
“Appointment of a new executive management team is likely to occur within the next week. The integration will then move in to the regions and countries as well as global and HQ functions,” said DSV in a separate statement.
“The entire integration period is expected to take 2-3 years, with most of the operational integration being completed within two years.”
The enterprise value of the transaction is about CHF5.1 billion corresponding to DKK35.1 billion excluding the impact from IFRS 16, and CHF5.4 billion corresponding to DKK 37.0 billion including IFRS 16 impact.
DSV expects to achieve annual cost synergies of around DKK2,200 million. The cost synergies are expected to have full-year effect by 2022 and will primarily be derived from the consolidation of operations, logistics facilities, administration and IT infrastructure.
Panalpina announced on April 1 this year that it had been acquired by DSV in a share exchange deal that would create a European powerhouse in logistics and freight forwarding.
Photo: Formulanone
