DSV-Panalpina deal complete, soon to be known as DSV Panalpina A/S

August 19, 2019: As of August 19, 2019, Danish transport and logistics company DSV A/S expects to settle the previously announced public exchange offer for all publicly held shares of Panalpina, in accordance with Swiss market practices. With the conclusion of the settlement, the previously announced board changes in Panalpina will come into effect - Kurt Kokhauge Larsen will be chairman, and chief executive officer (CEO) Jens Bjørn Andersen, chief financial officer (CFO) Jens H Lund and independent deputy chairman of the board Thomas Stig Plenborg will be the members of Panalpina board, giving DSV full control over Panalpina.

Pending the approval at an extraordinary general meeting, DSV A/S will change its registered name to 'DSV Panalpina A/S'. As the integration progresses, all subsidiaries and operational activities, however, will be united under the DSV's brand name.

Welcome Panalpina!

Today, we are very excited to welcome 14,500 new colleagues from Panalpina to DSV #DSVPanalpina #AchievingMoreTogether

We look forward to joining forces and to working with you all. Here's a very warm welcome from all around the DSV world: pic.twitter.com/zD7CNbxr7Q

— DSV A/S (@DSV_AS) August 19, 2019

The integration process of the new management team is likely to occur within the next week. Later, it will move into the regions and countries as well as global and headquarters functions. The entire integration period is expected to take 2-3 years, with most of the operational integration being completed within two years.

Andersen stated, "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, during which we will strive to provide a high level of service our customers know and rely on."

DSV expects to achieve annual cost synergies of around DKK 2,200 million. The cost synergies are expected to have a full-year effect by 2022 and will primarily be derived from the consolidation of operations, logistics facilities, administration, and IT infrastructure.

The transaction is expected to be EPS accretive (diluted and adjusted) by 2021. For full-year 2022, DSV expects that the operating margin of the combined entity will be lifted towards the DSV Group's current level. Long-term financial targets will be communicated in 2020.

Any update, including the expected timing of synergies, integration costs and outlook for 2019, will be communicated in DSV's Q3 2019 interim financial report on November 1, 2019, which was postponed due to Panalpina's consolidation.

Panalpina is one of the leading providers of supply chain solutions with approximately 14,500 employees in 70 countries. The combination with DSV creates one of the world's largest transport and logistics companies with pro forma revenue of approximately DKK 118 billion and a workforce of 60,000 employees in 90 countries.

How DSV built its empire through acquisitions

Founded in 1976, DSV is a result of many mergers and acquisitions, which continuously went on to buy large and small companies - starting with small trucking companies and freight forwarders in the 1980s.

"We could never have been what we are today without the numerous acquisitions over the years," said Andersen who joined DSV in 1997 through the acquisition of Samson Transport.

Many of the employees in DSV today have joined through a merger or an acquisition; employees from all levels and areas of the business across the globe continue to work with DSV. Merger and acquisition has not only added value over the years and helped develop DSV as a business, but also helped in infusing new expertise and talent.

As of August 16, DSV shares closed at DKK 634.20.