DSV set to acquire two US-based logistics firms, strengthen its semiconductor service offerings
These acquisitions will strengthen DSV's position within the semiconductor industry, align with its new Phoenix-Mesa Gateway Airport operations and support DSV's growing cross-border services to Latin America
On Tuesday, DSV has reached agreements to acquire US-based transport and logistics companies S&M Moving Systems West and Global Diversity Logistics.
These acquisitions will strengthen DSV's position within the semiconductor industry, align with its new Phoenix-Mesa Gateway Airport operations and support DSV's growing cross-border services to Latin America. The transactions are expected to be completed in April 2023, pending all legal formalities.
Headquartered in Phoenix and Chandler, Arizona, S&M Moving Systems West and Global Diversity Logistics are both run by the same family. They have a total of 130 employees and operate across 11 sites in Oregon and Arizona. Together they provide services within domestic road freight, international air and sea freight, warehousing, trade show logistics and specialist solutions to support the semiconductor industry.
"We have a strong presence in the US, and these acquisitions underline our continuous commitment to strengthening our US position, competencies and service offerings. They also provide access to a strong heritage and a wealth of knowledge and experience in the semiconductor industry," says Niels Larsen, President DSV Air & Sea US.
There is a strong match between DSV, S&M Moving Systems West and Global Diversity Logistics' respective businesses and operating structures. These acquisitions will expand DSV's existing US footprint, particularly in Arizona, and bring together its air and sea, road and warehousing divisions with the new acquisitions.
"What started with a single truck over 100 years ago has evolved and grown significantly. As a family-run business, we have strong values, dedicated employees and a focus on excellent customer service, which is a shared core value with DSV. I am proud of what we have achieved and excited for this new chapter of our story with DSV," says Steve Todare, President S&M Moving Systems West.
These acquisitions are consistent with DSV's growth strategy. They are an important step for DSV's operations in the US and combining these organisations will result in several benefits for all parties.
"We have now become part of the third largest global logistics provider and gain access to an extensive network, digital platforms and comprehensive service offerings. This will enable us to continue to support our customers by enhancing our existing solutions and capabilities. We're looking forward to joining DSV and bringing together our expertise, assets, and not least, our talented people," says Brooke Todare, President, Global Diversity Logistics.
Enhancing DSV's cross-border solutions
The acquisitions of S&M Moving Systems West and Global Diversity Logistics go hand-in-hand with DSV's new Phoenix-Mesa Gateway Airport operations and air charter expansion in Arizona. Customer demand for services to Latin America continues to grow, and these acquisitions will support the development of DSV's cross-border services and provide customers with a reliable and efficient additional gateway to Latin America.
Robert Greene, Executive Vice President, DSV Road US is excited about how these acquisitions will also benefit DSV's growing cross-border operations. "We have recently expanded our cross-border operations to facilitate the growing trade between the US and Mexico. We are currently supporting a range of customers across various industries and can now provide a reliable alternative to Miami. With two official gateways into Latin America, we are better placed to support customer needs, particularly during busy periods and congestion," he says.
Arizona is also emerging as an electric vehicle sales and manufacturing hub, and the extra infrastructure and workforce of these acquisitions will also help DSV provide additional solutions for its existing customers.
"As a result of these acquisitions, we will be gaining 130 new colleagues, additional transport assets and over 1 million sq. ft of logistics centres. This will strengthen our US operations and provide the potential to develop our contract logistics business further in these regions," says Michael Marlow, President, DSV Solutions US.
Niels Larsen added, "DSV will approach this integration with integrity, transparency and respect for both organisations and the people in them. We are now looking forward to embarking on this new chapter, welcoming our new colleagues to DSV and working together towards future growth for our customers and DSV."
The parties have agreed not to disclose the purchase price. Until obtaining all required regulatory approvals and closing of the transaction, DSV, S&M Moving Systems West and Global Diversity Logistics remain separate companies and thus will run their businesses independently as usual.