Edited Press Release
STOCKHOLM -(Dow Jones)- DSV Group said Saturday it has entered into an agreement with 3i Group plc (LSE:III) and 3i funds ("3i"), the management team in ABX Logistics and other shareholders to acquire all of the shares of XB Luxembourg Holdings 1 S.A., the parent of the ABX Logistics Worldwide SA/NV Group ("ABX") of Belgium.
The aggregate price of the entire share capital, on a debt and cash free basis (Enterprise Value) is EUR750 million (DKK5.6 billion).
For 2007, DSV and ABX had pro-forma combined aggregate annual revenues of approximately EUR6.5 billion (DKK48.5 billion) with approximately 25,000 employees, and operated own transport networks spanning more than 60 countries.
The acquisition will strengthen DSV's Road activities mainly in Italy, Germany, France, and Spain.
The acquisition is financed by raising loans with the current financing partners of the DSV Group.
ABX is an established company within the same business areas as DSV. The geographical coverage of ABX, which has considerable European activities in Italy, Spain, France and Germany, complements the current structure of DSV with its strong Nordic roots.
Furthermore, ABX has activities in Asia, North America, South America, and Africa.
It has been an intention of DSV for a long period of time to strengthen, and preferably double, the revenue generated from Air & Sea activities. Through the combination, these activities will approximately double in size.
DSV and ABX will integrate their activities in Air & Sea, Road and Contract Logistics to create both operating and administrative synergies.
The synergies are 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 realised by the various divisions of the DSV Group.
The aggregate price of the entire share capital, on a debt and cash free basis (Enterprise Value) is EUR750 million (DKK5.6 billion). DSV will finance the acquisition price through bridge financing facilitated by the current main banks of the Group.
The transaction is expected to complete in the third quarter of 2008 and is subject to approval by the relevant competition authorities.
Headquartered in Brussels, ABX is a global freight forwarder. The Group achieved consolidated revenues of EUR1.8 billion in 2007, employs 6,700 FTE in 35 countries and operates in 65 other countries through agents, partners and joint-ventures.
ABX offers air and sea freight forwarding services globally and international road transport in Europe.
It also provides Contract Logistics Solutions in Europe.
ABX has a particularly strong presence in Western and Southern Europe, and it also operates a network in Asia-Pacific and in the Americas.
Its Air & Sea activities achieved a turnover of over EUR1.3 billion in 2007.
The ABX Group achieved EBITDA of EUR54 million and EBITA of EUR31.9 million ( an EBITA margin of 1.7%).
(END) Dow Jones Newswires 06-23-08 0128 Copyright (c) 2008 Dow Jones & Company, Inc.
