A.P. Moller – Maersk has reached an agreement with Bridgepoint Development Capital to acquire KGH Customs Services (KGH), a Sweden-based specialist in trade and customs management services in Europe.
The move is aimed at bolstering Maersk’s capabilities as an integrated container logistics company.
Maersk plans to acquire KGH for a consideration of $ 279 million on a cash and debt-free basis equivalent.
“There are no end-to-end solutions without customs clearance. With KGH, we will not only be able to strengthen our capabilities within customs services and related consultancy, but also reach more of our customers in Europe through a larger geographical footprint and digital solutions that will enhance our ability to meet our customers´ end-to-end supply chain needs. We achieve all this in one go instead of having to build our expertise through multiple acquisitions,” says Vincent Clerc , CEO of Ocean & Logistics at A.P. Moller – Maersk.
Based in Gothenburg, Sweden, KGH has acted as an advisor to various authorities in the EU and the UK, providing consulting services and insight. The company’s strategy is focused on digital solutions and technology, which corresponds to Maersk’s digital transformation.
KGH has in the past years achieved a revenue of approximately SEK 890 million in 2019 ($ 95.5 million), recurring EBITDA of approximately SEK 160 million ($ 17.2 million), and an EBITDA margin of approximately 18 percent. KGH has 775 employees and a yearly business of 1.98 million clearances.
“By joining forces, we will be able to continue to build on the great success our teams have achieved, and at the same time play a key role in a combined entity providing a range of different services within the transportation and logistics industry,” says Lars Börjesson , CEO of KGH Customs Services.
With the acquisition of KGH, Maersk will have a solid platform for growth in customs services in Europe with own setups operating in 22 European countries with a total of 2.38m clearances on a yearly basis, 960 specialised employees and a combined turnover of $ 109.4 million.
When ramped up, annual EBITDA synergies from the combination are expected to amount to approximately $ 5.4 million-$8 million.
The closing of the acquisition is subject to customary regulatory approvals.
The latest transaction comes on the back of Maersk’s acquisition of Performance Team, a US-based warehousing and distribution company, a move also targeted at strengthening the group’s capabilities as an integrated container logistics company.