Maersk Logistics to acquire DSL

PR-Department
P R E S S R E L E A S E
1 Aug 2001

Maersk Logistics bolsters market position

Maersk Logistics has signed a Letter of Intent to acquire certain activities and certain assets of a major global logistics company Distribution Services Limited (DSL).

Maersk Logistics, the integrated logistics arm of the A.P. Moller Group, has entered into a letter of intent with Distribution Services Limited (DSL), that contemplates the acquisition by Maersk Logistics of certain activities and certain assets and related operations of the transload and warehouse operations, ocean transport intermediary activities and consolidation business of DSL. The completion of the acquisition is subject to the negotiation and execution of a definitive agreement between the parties, as well as satisfaction of applicable regulatory requirements and obtainment of necessary governmental and third party consents and approval.

“The acquisition would enhance our existing business by drawing on DSL’s expertise in areas that both complement and build upon our own experience,” says Søren K. Brandt, Maersk Logistics’ Managing Director and Chief Executive Officer. “The acquisition would enable us to further consolidate our market position and increase our capability to deliver a broader logistics service package to existing and potential clients.”

The proposed integration of DSL’s more than 20 years of skills and experience in operational logistics with Maersk Logistics’ strategic perspective and supply chain expertise will position Maersk Logistics to address the full spectrum of its customers’ needs. “This transaction would represent the foundation for further growth and prosperity for our customers,” says Cobb Grantham, DSL’s Chief Executive Officer.

As well as solidifying Maersk Logistics’ position in the global market place, the proposed acquisition would significantly increase the company’s cargo volumes from Asia Pacific to North America in the supply chain management segment, make the company a leading player in transload and warehouse operations in North America and establish a presence in the ocean transport intermediary activities segment.

Maersk Logistics recognises that the skill sets of the employees of both companies are critical to its continued growth and would be offering exciting opportunities for those people who could contribute to the continued success of a dynamic and rapidly expanding company.

“Our growth strategy involves widening our expertise in integrated logistics management and the proposed acquisition would allow us to do just that,” says Mr. Brandt. “There is a strong synergy between the two companies, and the acquisition would provide a platform for future growth.”