DFDS Expands Mediterranean Footprint with Turkish Logistics Acquisition
Friday, Nov 15, 2024 7:02 am ET
1min read DFDS, a leading European transport and logistics company, has agreed to new terms and completed the acquisition of Ekol Logistics' international transport network, further expanding its Mediterranean footprint and connecting it directly to Türkiye. This strategic move aligns with DFDS' transport network strategy, focused on moving goods in mainly trailers by ferry, road, and rail, and offering complementary logistics solutions.
The acquisition of Ekol Logistics' network, which operates own offices and facilities in 10 European countries, adds road transport to DFDS' Mediterranean ferry network, extending its proven northern European ferry/road business model to this region. Moreover, DFDS' logistics network is expanded across Europe, enabling it to offer end-to-end transport and logistics solutions directly to end customers trading between Türkiye and Europe.
The acquisition is expected to bring significant synergies and cost savings, with a business and integration plan aiming to improve the acquired company's EBIT-margin from 2.5% in 2023 to around 5% by 2027. This includes a net positive impact from synergies and integration costs, with a break-even result expected by year-end 2025 and annual revenue growth exceeding 5%. The integration plan focuses on three phases: commercial and operational improvements, network integration, and network optimization.
DFDS' acquisition of Ekol Logistics' international transport network is a strategic move that capitalizes on the growing nearshoring trend, as supply chains shift closer to end markets. This acquisition supports Türkiye's role as a manufacturing hub for Europe and positions DFDS to provide reliable and efficient transport infrastructure, supporting the country's continued growth.
In conclusion, DFDS' acquisition of Ekol Logistics' network is a strategic and financially sound move that expands the company's European logistics footprint and connects it directly to Türkiye. By extending its proven ferry/road business model to the Mediterranean and offering end-to-end transport solutions, DFDS is well-positioned to capitalize on the growing nearshoring trend and support Türkiye's manufacturing hub status. The acquisition is expected to bring significant synergies and cost savings, driving long-term growth and value for DFDS shareholders.
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The acquisition of Ekol Logistics' network, which operates own offices and facilities in 10 European countries, adds road transport to DFDS' Mediterranean ferry network, extending its proven northern European ferry/road business model to this region. Moreover, DFDS' logistics network is expanded across Europe, enabling it to offer end-to-end transport and logistics solutions directly to end customers trading between Türkiye and Europe.
The acquisition is expected to bring significant synergies and cost savings, with a business and integration plan aiming to improve the acquired company's EBIT-margin from 2.5% in 2023 to around 5% by 2027. This includes a net positive impact from synergies and integration costs, with a break-even result expected by year-end 2025 and annual revenue growth exceeding 5%. The integration plan focuses on three phases: commercial and operational improvements, network integration, and network optimization.
DFDS' acquisition of Ekol Logistics' international transport network is a strategic move that capitalizes on the growing nearshoring trend, as supply chains shift closer to end markets. This acquisition supports Türkiye's role as a manufacturing hub for Europe and positions DFDS to provide reliable and efficient transport infrastructure, supporting the country's continued growth.
In conclusion, DFDS' acquisition of Ekol Logistics' network is a strategic and financially sound move that expands the company's European logistics footprint and connects it directly to Türkiye. By extending its proven ferry/road business model to the Mediterranean and offering end-to-end transport solutions, DFDS is well-positioned to capitalize on the growing nearshoring trend and support Türkiye's manufacturing hub status. The acquisition is expected to bring significant synergies and cost savings, driving long-term growth and value for DFDS shareholders.
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