Copenhagen, Denmark —Danish logistics firm DSV has agreed to acquire Swiss rival Panalpina for $4.6 billion, creating one of the world’s largest cargo-handling and logistics companies.
The board of directors of Panalpina recommended shareholders accept the mostly stock offer worth 196 Swiss francs a share, the companies said in a statement.
The air and sea division of the two logistics giants will be “substantially strengthened” and will be among the largest providers globally, with close to three million containers (TEUs) and more than 1.5 million tonnes of airfreight transported each year.
“A combination of DSV and Panalpina further strengthens our position as a leading global freight forwarding company,” stated 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’s a great match on all parameters. Panalpina is a great company and we’re very excited by the possibility to join forces and to welcome Panalpina’s talented staff.”
“In the course of the past weeks, Panalpina’s board of directors and management have been exploring different strategic initiatives and held discussions with DSV about a potential combination,” added Peter Ulber, chairman of the board of Panalpina. “The board of directors’ assessment is that the updated proposal of DSV is very attractive. We are now looking forward to joining forces with DSV and contributing to creating, one of the world’s largest transport and logistics companies.”
The Ernst Göhner Foundation, Panalpina’s largest shareholder with a 46 per cent stake, will, at the completion of the transaction become the largest shareholder of DSV with a holding of approximately 11 per cent of the issued share capital.
“In view of the ongoing industry consolidation and resulting opportunities and risks, we have carefully considered various options for Panalpina with an open mind,” said Thomas A. Gutzwiller, member of the board of trustees and chairman of the independent Panalpina Committee of Ernst Göhner Foundation. “Our Board of Trustees unanimously concluded that the proposed combination under the umbrella of DSV provides the best opportunities for Panalpina to meet future market challenges from a position of strength and to create value for all stakeholders. As an entrepreneurial foundation with a philanthropic purpose, we feel very comfortable with the announced solution both in terms of quality and security as well as earnings potential. In this spirit of continuity Ernst Göhner Foundation looks forward to supporting DSV Panalpina as the largest shareholder.”