A.P. Moller - Maersk has announced that it 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.
This will further enhance Maersk’s capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers.
With its specialised expertise across freight modes (air, ocean, land) and deep knowledge in selected industries, combined with innovative technology, KGH will significantly improve Maersk’s overall offering within customs services.
KGH has a strategy focused on digital solutions and technology as an enabler for a more seamless customer experience, which also corresponds with Maersk’s own digital transformation journey.
Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller - Maersk sees KGH as a perfect fit to Maersk offerings within logistics: “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."
Watch: How Maersk Keeps Cargo Moving at DP World's Jebel Ali Port
"We achieve all this in one go instead of having to build our expertise through multiple acquisitions.”
Based in Gothenburg, Sweden, KGH is a well-known and respected partner to a wide range of authorities, providing valuable consulting and advice, most recently in the connection with Brexit, as advisors to various authorities in the EU and the UK.
KGH has 775 employees and a yearly business of 1.98m clearances.
The acquisition of KGH makes Maersk an attractive partner for its customers operating in individual countries, as well as for those looking to combine several geographies under one service provider.
Maersk will acquire KGH for a consideration of $279 million on a cash and debt free basis equivalent to a multiple of 16.3x 2019 EBITDA before synergies, excluding an earn-out component contingent on future Brexit performance.
When ramped up, annual EBITDA synergies from the combination are expected to amount to approximately $5.4 to $8 million.
The closing of the acquisition is subject to customary regulatory approvals.
Read More: ZIM and Maersk Container Industry Grow Business Collaboration