Forwarding Harvester DSV Targeting C.H.Robinson Global Freight Forwarding Business
2019, DSV acquired industry giant Panalpina for $5 billion.
2021, DSV acquired Agility Global Integrated Logistics GIL for $4.1 billion.
There is no doubt that DSV is the most acquired enterprise in the international logistics industry. With its successful acquisition all the way, DSV has entered the top three in the world with comprehensive strength!
Reuters: Recently, DSV, known as the freight forwarding giant "harvester", has once again focused on C.H. Robinson's global freight forwarding business!
C.H. Robinson's freight forwarding business performed significantly better than its freight brokerage business, which suffered during the outbreak as contract truck rates struggled to catch up with the spot market. However, high demand for sea and air freight services pushed the company's cargo volumes to new highs. Revenue from C.H. Robinson's freight forwarding business more than doubled to $6.7 billion in 2021. The unit reported an adjusted gross margin of 16 percent for the year, with operating margins close to half that level. The division has already earned $2.2 billion in the first three months of this year. Significant freight rate increases due to strong demand and tight capacity, combined with increased market share, drove revenue growth.
Morgan Stanley analyst Ravi Shanker said the sale of the global freight forwarding business would be a departure from C.H. Robinson's long-term strategy, but that's not entirely surprising given recent interest in the company from activist investors. Shanker Ravi said: "When Ancora was announced as a strategic investor in C.H. Robinson earlier this year, we noted that the potential to split the company and sell the freight business could be one of the financial engineering solutions to try to unlock value quickly. Management has long said that they see the ground and freight operations in North America as one, but perhaps the involvement of strategic investors has driven a shift in their mindset." DSV has long expressed interest in expanding in North America, having previously said it wants to grow through mergers and acquisitions amid a strong deal-making environment for the global logistics industry.
Over the past few years, DSV has made a number of acquisitions. In 2021, acquired Agility's global integrated logistics business for $4.1 billion. In 2019, acquired Panalpina (Pan-Abana) in Switzerland for over $5 billion.
A DSV spokesman said: "As you know, mergers and acquisitions are an important part of DSV's strategy, and we have a fiduciary obligation to our shareholders to monitor the market and play an active role in the industry's continued consolidation. As part of this strategy, we will review any potential opportunities, but are not aware of any divestment process Robinson by C.H. at this time."
C.H. Robinson said the company "does not comment on rumors and speculation". C.H. Robinson, valued at $13 billion, has two core businesses, freight brokerage, which helps shippers move goods to carriers, and global freight forwarding, which also arranges the movement of goods, but is more complex because it includes international operations.
Disclaimer: The posting of this article on this website is for the purpose of transmitting more information and does not mean that it agrees with its views or confirms its description. The content of the article is for reference only, and please verify the relevant information; The picture comes from the network, if there is infringement, please contact delete.
