DSV’s acquisition of Panalpina is to be finalised today when the Danish freight forwarder settles the public exchange offer.
The deal excluding the impact from IFRS 16, is worth CHF 5.1 billion (US$5.1 billion) corresponding to DKK 35.1 billion. Including IFRS 16 impact, it is valued at CHF 5.4 billion corresponding to DKK 37 billion.
The merging of DSV and Panalpina creates one of the world’s largest transport and logistics companies with a revenue of approximately DKK 118 billion and a workforce of 60,000 employees in 90 countries. It will become the globe’s second biggest air freight forwarder.
With the settlement, Kurt Kokhauge Larsen will become chairman of Panalpina, and Jens Bjørn Andersen, Jens H. Lund and Thomas Stig Plenborg will be members of the Panalpina board, giving DSV full control over Panalpina. Appointment of a new executive management team is set to take place within the next week.
Pending the approval at an extraordinary general meeting, DSV A/S will change its registered name to ‘DSV Panalpina A/S’. As the integration progresses, all subsidiaries and operational activities, however, will be united under the DSV name and brand.
DSV CEO, Jens Bjørn Andersen 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.”
By acquiring Panalpina, DSV said it expects to achieve annual cost synergies of around DKK 2,200 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.
The integration of DSV and Panalpina will then move to the regions and countries as well as global and HQ functions. The entire integration period is expected to take 2-3 years, with most of the operational integration being completed within two years.