DSV completes acquisition of Switzerland's Panalpina for US$5.5b
DSV A/S has settled the public exchange offer for all publicly held shares of Panalpina Welttransport (Holding) AG in a deal worth CHF5
DSV A/S has settled the public exchange offer for all publicly held shares of Panalpina Welttransport (Holding) AG in a deal worth CHF5.4 billion (US$5.5 billion) that was made in accordance with Swiss market practices.
As a global provider of supply chain solutions, Panalpina has 14,500 employees located in 70 countries. The merger with DSV creates one of the world's largest transport and logistics companies with a pro forma revenue of DKK118 billion ($17.56 billion) and a workforce of 60,000 employees across 90 countries.
DSV CEO Jens Bjorn Andersen said in a company statement: '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.'
DSV 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.
Pursuant to the public exchange offer, Panalpina shareholders have received 2.375 DSV shares (with a nominal value of DKK1 per share) for each Panalpina share. Fractional DSV shares are being settled in cash.
With the conclusion of the settlement, board changes in Panalpina will be implemented with Kurt Kokhauge Larsen appointed chairman, and Jens Bjorn Andersen, Jens Lund and Thomas Stig Plenborg made members of the Panalpina board, giving DSV full control over Panalpina.
DSV intends to have Panalpina appoint Jens Bjorn Andersen and Jens Lund as CEO and CFO, respectively, of Panalpina, to take over from Stefan Karlen and Robert Erni respectively. Mr Karlen and Mr Erni will continue to serve as members of the integration committee, with Mr Andersen and Mr Lund.
DSV expects to achieve annual cost synergies of DKK2.2 billion. 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.