DSV Panalpina sees acquisitions ahead after full Panalpina merger
DSV Panalpina is planning to make more acquisitions in 12-18 months' time, with its eye on 'larger rather than smaller' companies
DSV Panalpina is planning to make more acquisitions in 12-18 months' time, with its eye on 'larger rather than smaller' companies.
According to chairman Thomas Plenborg 'additions within road are likely to be on the radar next' particularly once the road division's new transport management system is fully developed and in a position to scale. 'The industry is still very fragmented, and there's lots of scope for further consolidation,' he said, reported London's Air Cargo News.
Mr Plenborg said the that the timing of the next acquisition will hinge on the company being able to confirm that the integration of Panalpina is on track. DSV finalised in August its US$5.5 billion deal to takeover Panalpina.
'We've made the biggest acquisition in the history of DSV, and we've made a promise to our shareholders that we can successfully integrate Panalpina,' he said.
'We are fully committed [for the next 12-18 month] to delivering on that promise and believe in the many synergies that can come from the combination: better and more services, stronger networks, greater buying power.'
Mr Plenborg has much confidence in the management of DSV. 'We have a very strong and stable management team, and they know what they're doing. They have the raw leadership skills needed to integrate two companies in an efficient and pragmatic way.'
He said that issues the new executive board need to consider once the integration is well underway are 'how to steer the business sustainability into the future ?and how to successfully mitigate risks.
'The climate debate is starting to manifest itself among customers too, and we need to think more about what we can do to promote eco-friendly solutions. It's a complicated problem, and we'd want to find a way without disrupting the industry, the global supply chain or our position as a profitable business.'