Monday, October 1, 2012

Logistics Group Continue to Acquire Freight Forwarders and Road Haulage Interests

DSV Continue on a Well Trodden Path
Shipping News Feature

DENMARK - MIDDLE EAST – AFRICA – ASIA – CZECH REPUBLIC – A busy week or two for global logistics group DSV with two major acquisitions for the Danish group which has always gained market position with a policy of snapping up likely candidates. The road haulage turned all round shipping specialist has now agreed to take over Swift Freight, a Dubai based forwarder whilst also agreeing terms with AWT Čechofracht a.s. to purchase certain aspects of the Czech Republic headquartered group.

In Africa Swift Freight has offices in Mozambique, Zambia, D.R. Congo, Tanzania, Rwanda, Burundi, Uganda, Kenya, Ethiopia, Nigeria, Ghana and Togo whilst the company maintains a presence in the United Arab Emirates, India and China. The agreement to purchase includes full ownership of the companies in UAE, China and India and initially a 33% share of ownership of the companies in Africa with DSV expected to assume full ownership of the African entities over an agreed period of time.

The move strengthens DSV’s position on the African continent offering as it does a ready made network of twelve offices which will trade under the ‘DSV Swift’ banner adding to DSV’s current presence in three other African countries. Swift employs around four hundred staff and has revenues of approximately $400 million.

The Czech Republic agreement includes the road, air and sea freight activities and contract logistics of AWT Čechofracht, a major rail cargo specialist and a company that DSV says has a strong presence in the region with current revenues of around €30 million. The agreement came into effect on the 27th September and was sealed for an undisclosed sum. Jens Bjorn Andersen, DSV Group CEO, said:

"The agreement with Swift Freight is an important step in DSV's efforts to increase our presence in emerging markets and we see great prospects for future growth in Africa and the Middle East. Swift Freight is a first class company and we are looking forward to welcoming Mr. Warren Erfmann and the Swift Freight team as members of the DSV family. DSV's global network and Swift Freight's reach and expertise in Africa are a perfect match that creates a strong platform for future growth.

"AWT Čechofracht a.s. is an important player with strong traditions in the Czech market. The activities acquired match the current DSV activities in the Czech Republic well and will furthermore create a complete local distribution network"

Historically the three divisions of DSV (Road, Air and Sea plus Solutions) have profited by acquiring some big name scalps since the company was formed around 36 years ago including the likes of Samson Transport, Frans Maas, DFDS Dan and ABX giving the group a staff of over 21,000 in its offices in 60 or so countries before the latest moves.

Photo: Jens Bjorn Andersen, DSV Group CEO