EU approves DSV’s acquisition of ABX Logistics
European Union competition authorities Friday approved DSV’s acquisition of Brussels-based ABX Logistics.
The final closing is expected on Oct. 1. At that time, DSV said it would provide information on its plans for the ABX integration.
In June, Danish logistics group DSV A/S entered into an agreement with 3i Group plc and 3i funds, the management team of ABX Logistics and other shareholders, to buy all the shares in ABX parent company XB Luxembourg Holdings 1 S.A.
At the time of the acquisition announcement, DSV said the aggregate price of the entire share capital, on a debt and cash free basis, is 750 million euros ($1.16 billion). DSV said it would finance the acquisition price through bridge financing facilitated by the current main banks of the group.
The parties said the merger of DSV and ABX will create a company with pro-forma annual revenue of 6.5 billion euros ($9.5 billion) and a workforce of 25,000, better positioning it to counter increasing competition in the transport and logistics sector, including from new Asian players.
The management teams highlighted the geographic fit between the Northern European presence of DSV and the South and Western Europe presence of ABX
DSV and ABX will integrate their activities in air and sea, road and contract logistics to create operating and administrative synergies. The integration is expected to be fully implemented before the end of 2011, when the margins of ABX are expected to be on a level with the margins realized by the various divisions of the DSV Group.
Brussels-based ABX posted consolidated revenue of 1.8 billion euros in 2007, employs 6,700 full-time employees in 35 countries and operates in 65 other countries through agents, partners and joint ventures. As part of the terms of the agreement, the ABX headquarters will be maintained in Brussels through at least 2011.
Globally, DSV employs more than 19,000 staff in more than 500 locations worldwide.
In addition, DSV will build a new Swedish headquarters in Landskrona.
The company said the first phase of construction would comprise about 74,000 square meters, enabling DSV Road to consolidate all of its activities in the Skane region into one logistics center.
The Landskrona facility will be built beside the E6 motorway and is expected to open in three years. It will initially employ 700 employees, and may expand to 1,000 employees, DSV said.