The new chairman of the recently merged DSV Panalpina, Professor Thomas Plenborg, has said that the business will be targeting acquisitions in the road freight sector – once the integration of the two businesses has been completed.
DSV completed its takeover of Panalpina in August, creating a business which will have sales of some £14.5 billion and employ 60,000 people in 90 countries.
“Once we’re 12-18 months into the integration of Panalpina, and we can affirm we’re on track, then I think we’ll start to talk about the possibility of boosting organic growth through another M&A,” said Plenborg.
“The industry is still very fragmented, and there’s lots of scope for further consolidation.”
Plenborg said that DSV Panalpina would target larger rather than smaller acquisitions within its Road division.
“When the Road division’s new Transport Management System is fully developed and ready to scale, additions within this business area will be attractive for us. It’s all about increasing our network – within Road as well,” he said.
However Plenborg said that now was “not the time for a lot of new initiatives”.
“We’ve made the biggest acquisition in the history of DSV, and we’ve made a promise to our shareholders that we can successfully integrate Panalpina. We are fully committed to delivering on that promise and believe in the many synergies that can come from the combination: better and more services, stronger networks, greater buying power.”
By Christopher Walton