COPENHAGEN (Reuters) - Danish transport group DSV (DSV.CO) has entered into an agreement to acquire 100 percent of shares in XB Luxembourg Holdings, the mother company of ABX Logistics Worldwide, for 750 million euros ($1.2 billion).
In a combined statement on Saturday, DSV and ABX Logistics said the acquisition would strengthen the group’s Road activities, particularly in Italy, Germany, France and Spain.
‘It is a great pleasure that we have succeeded in uniting ABX and DSV. The match between the two companies is nearly ideal, both geographically and in terms of the activities. ABX has in a number of years been on top of the list of potential merging partners,’ CEO of DSV, Kurt Larsen said in the statement.
The agreement had been entered into with 3i Group Plc and 3i Funds, the management of ABX Logistics and other shareholders, DSV said.
In 2007, DSV and ABX Logistics had a combined pro forma turnover of about 6.5 billion euros and some 25,000 employees. Their combined transport networks covered over 60 countries. In 2007, ABX Logistics had a turnover of 1.8 billion euros, DSV said
The Danish group said it would buy XB Luxembourg Holdings on a debt-free basis, and finance the acquisition through a bridge loan facility. The acquisition is expected to go though in the third quarter of this year, and is dependent on acceptance from the relevant competition authorities.
Reporting by Mette Kronholm Fraende