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Danish transport company buys UTi Worldwide for 1.35 bln USD

Xinhua, October 9, 2015 Adjust font size:

Danish company DSV, a global supplier of transport and logistics solutions, has signed an agreement to acquire U.S.-based supply chain management company UTi Worldwide for 1.35 billion U.S. dollars, it announced Friday.

DSV will pay 7.10 U.S. dollars in cash per ordinary share, representing a 34 percent premium over the 30-day volume weighted average trading price for the ordinary shares and a 50 percent premium relative to UTi's closing trading price on Oct. 8, 2015, the company said in a press statement.

DSV's annual revenue is expected to increase by 50 percent through the acquisition, and the new entity will have 44,000 employees in 84 countries.

"We complement each other perfectly, both in terms of business activities and geography," said DSV chairman of the board Kurt Larsen in the statement.

"Together, we will be even stronger and able to capitalize on business synergies as well as a greater global reach to the benefit of shareholders, customers and employees," he added.

The acquisition is subject to approval by UTi shareholders, as well as the relevant regulatory approvals. The transaction is expected to be finalized by the first quarter of 2016.

DSV estimates that it will take two years before the company's earnings will be improved as a result of the acquisition.

DSV's share price on Friday morning increased 6 percent after the first minutes of trading at the Copenhagen Stock Exchange following the announcement.

Founded in 1976, DSV now employs approximately 22,000 people and collaborates with partners and agents worldwide. Headquartered in California, UTi has 21,000 employees in 58 countries and had a turnover of 3.9 billion dollars in the 12 months ending July 31, 2015. Endit