A.P. Moller-Maersk Group (OTCMKTS: AMKBY) has reached an agreement with Bridgepoint Development Capital to acquire the Swedish customs broker, KGH Customs Services, for an estimated $279 million.
The liner carrier said the acquisition of the Gothenberg, Sweden-based company, which is subject to regulatory approval, will expand its customs services offerings to European shippers.
“We achieve all this in one go instead of having to build our expertise through multiple acquisitions,” said Vincent Clerc, CEO of ocean and logistics at A.P. Moller-Maersk, in a statement released on Monday, July 6.
“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,” Maersk added in a press release.
According to Maersk, KGH has in the past years achieved double-digit annual growth resulting in revenue of about $95.5 million, recurring earnings before interest, taxes, depreciation and amortization (EBITDA) of about $17.2 million, and an EBITDA margin of about 18%. KGH has 775 employees and a yearly business of 1.98 million import clearances.
With the acquisition, Maersk estimates that it will have 960 customs services employees across offices in 22 European countries. This will result in an estimated 2.38 million import customs clearances, and a combined turnover of $109.4 million.
Maersk has expanded its logistics and customs brokerage service offerings worldwide in recent years through acquisition.
In February 2019, the company acquired Vandegrift Inc., a Clark, New Jersey-based customs broker, increasing its North American customs services staff from 80 to 250 people and added 25 more licensed customs brokers.
On April 1, Maersk completed a $545 million acquisition of U.S. warehouse and distribution firm Performance Team, which more than doubled its warehouses in the North American market to 46.
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Click for more FreightWaves/American Shipper articles by Chris Gillis.