AP Moller-Maersk has agreed to buy KGH Customs Services, a Sweden-based specialist in trade and customs management services in Europe.
The Danish giant will paying SEK 2.6bn ($279m) to acquire Gothenberg-based KGH on a cash and debt-free basis from private equity group Bridgepoint Development Capital.
Maersk said the acquisition would create "a solid platform" for growth in customs services in Europe.
It expects the deal to lead to annual Ebitda synergies of around SEK 50m to 75m ($5.4m to $8m).
European market
KGH has 775 employees and a yearly business of 1.98m clearances.
The merged operation will employ 960 employees in 22 European countries with a combined turnover of SEK 1.02bn.
Maersk expects the acquisition will make the Danish company more competitive in end-to-end solutions for the European market.
“There are no end-to-end solutions without customs clearance," said Vincent Clerc, Maersk 's chief executive of ocean & logistics.
It gives Maersk access to more European customers and the ability to provide digital solutions that enhance its end-to-end supply chain needs.
"We achieve all this in one go instead of having to build our expertise through multiple acquisitions,” he said.
Brexit
The acquisition of KGH comes at an critical juncture for the European logistics industry. In recent years, KGH acted as an adviser on Brexit to various authorities in the European Union and the UK.
It achieved double-digit annual growth on revenues of around SEK 890m in 2019.
The closing of the acquisition is subject to regulatory approvals.
