A.P. Moller – Maersk (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.
According to a statement, this acquisition will “further enhance Maersk’s capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers”.
The carrier said KGH’s expertise across freight modes, knowledge of selected industries and innovative technology will improve its overall offering within customs services.
Additionally, Maersk said KGH’s digital solutions-based strategy to provide a seamless customer experience also corresponds with its 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 and services as well as another key building block in its strategic ambitions.
“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 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.
The company has in the past years achieved double-digit annual growth resulting in a revenue of approximately $95.5 million (SEK 890 million) in 2019, recurring EBITDA of approximately $17.2 million (SEK 160 million) and an EBITDA margin of approximately 18 percent.
“With Maersk, we will have a long-term home with a company that share our values, Lars Borjesson, CEO, KGH Customs Services, added.
“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.
“Customs services is an essential part of our customers’ end-to-end needs which we in unison with Maersk will be able to provide with seamlessness and global reach.”
Maersk will acquire KGH for a consideration of $279 million (SEK 2.6 billion) 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.
The closing of the acquisition is subject to customary regulatory approvals. Until then, Maersk and KGH remain two separate companies.