DSV to acquire UTi Worldwide

The DSV Group have signed an agreement to acquire US based UTi Worldwide. UTi has reported revenues of $3.9bn and 21,000 employees across 58 countries. The Boards of Directors of DSV and UTi have unanimously approved the transaction.

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. We look forward to joining forces and welcoming our new colleagues from UTi to DSV.”

Roger MacFarlane, Chairman of the Board of UTi, said of the acquisition, “We are operating in an industry where increasingly scale is critical. Joining forces with DSV delivers substantially greater client value and many future opportunities for our people while it is financially very attractive for our shareholders. As a result, the Board of Directors of UTi has unanimously approved the agreement with DSV and strongly recommends that our shareholders accept the offer.”

The transaction is conditional on obtaining the approval of the shareholders of UTi and receipt of the relevant regulatory approvals. Closing is expected in Q1 2016.

Further analysis from Ti’s senior analysts to follow.