DSV agrees to acquire UTi Worldwide Inc.

The DSV Group has signed an agreement to acquire US based UTi Worldwide Inc. (”UTi”). The total transaction implies an enterprise value of approximately USD 1.35 billion.
Kurt K. Larsen, Chairman of the Board of DSV, comments: “It is a great pleasure for me to announce the first step towards the combination of UTi and DSV. We complement each other perfectly, both in terms of business activities and geography. 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.”

Acquisitions are an integral part of DSV’s growth strategy, and DSV has a strong track record of successful integration of acquired companies. The acquisition of UTi is expected to increase DSV’s annual revenue by approximately 50 percent, creating one of the world’s strongest transport and logistics networks. Pro forma 2014 revenue amounts to approximately USD 13 billion and the combined workforce will grow to 44,000 people in 84 countries, 848 offices and 339 logistics facilities. The Air & Sea Division will be significantly strengthened, and DSV will increase its industry specific capabilities across all divisions. Furthermore, 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 combined companies will have a more balanced geographical footprint with approximately 61 percent of revenue in Europe, Middle East and North Africa, 17 percent in Americas, 16 percent in Asia (APAC) and 6 percent in Sub-Saharan Africa.

DSV and UTi are a strong match with many potential synergies as a result of similarities in business models and services:
• Commercial synergies from stronger network and service offerings, new competencies and skills
• Consolidation of offices and logistics facilities
• Consolidation of IT infrastructure
• Optimisation of organisational setup
• Stronger buying power

UTi employs approximately 21,000 full-time employees in 58 countries across more than 300 offices and 200 logistics centres and offers complete supply chain services and solutions, including air, ocean, distribution, customs brokerage and contract logistics. The company has a strong presence in North America and a leading position in South Africa. It also operates an extensive network in Asia-Pacific and Europe.
www.dsv.com