DSV and Panalpina’s AED16.8-billion merger will create top 5 global 3PL
Switzerland-based global 3PL and airfreight forwarder Panalpina and Denmark-based global 3PL DSV have announced that they are going to merge in a US $4.6-billion deal that will create a new company in the world’s top five largest 3PLs.
DSV will buy Panalpina for $4.6 billion, according to a joint statement issued by the companies. Once the deal is made official, DSV and Panalpina will become of the world’s largest transportation and logistics services providers with a combined pro forma revenue of more than US $17 billion and more than 60,000 employees.
Upon completion of the deal, an integration committee with both Panalpina and DSV representatives will be “established to oversee the integration process and ensure a fair treatment of all employees,” and that DSV will propose to its shareholders to change the company’s name to DSV Panalpina A/S, according to a statement.
“A combination of DSV and Panalpina further strengthens our position as a leading global freight forwarding company,” said Kurt Larsen, chairman of the Board of DSV. “Together, we can present a strong global network and enhanced service offering to our clients, further solidifying our competitive edge in the industry. It is a great match on all parameters. Panalpina is a great company and we’re very excited by this possibility to join forces and to welcome Panalpina’s talented staff.”
DSV officials said that this deal is expected to boost the company’s annual revenue by around 50%, making the combined entity a top four global 3PL for revenue, with operations in more than 90 countries.
Panalpina had previously been looking to merge with Agility, but that deal appears to have now been taken off the table.
The new DSV Panalpina will be a logistics goliath across a number of sectors with a combined 3 million TEU Air & Sea division and more than 1.5 million tons of airfreight annually, as well as a huge contract logistics operation thanks to Panalpina’s more than 500,000 square-meters of warehousing.
“DSV-Panalpina will be an important logistics service provider in the global market. DSV states that it will probably be the second largest air freight forwarder in the world and the fourth largest sea freight forwarder,” Thomas Cullen, analyst at London-based Transport Intelligence, told Logistics Management.
“The challenge now is for the new merged company to deliver the sort of integration performance that DSV’s management has delivered in the past.”