DFDS has successfully acquired the international transport network of Ekol Logistics, a prominent Turkish transport and logistics company based in Istanbul. This acquisition, which was finalized with revised terms agreed upon since November 1, 2024, marks a significant step for DFDS in expanding its ferry/road business model to the Mediterranean region and connecting Türkiye to its existing logistics network.
The acquisition is expected to bring in a network revenue of DKK 3.3 billion for 2024 and will add 3,700 employees to DFDS. The transaction enterprise value amounts to DKK 1.8 billion, corresponding to 0.55x EV/Sales for Q3 2024 LTM. Through this acquisition, DFDS aims to enhance its transport infrastructure to support Türkiye’s growth as a manufacturing hub efficiently.
The strategic fit of integrating Ekol Logistics’ international transport network into DFDS’ operations aligns with the company’s focus on transporting goods through trailers via ferry, road, and rail. This move will extend DFDS’ proven business model in northern Europe to the Mediterranean region and enable the company to offer end-to-end transport and logistics solutions directly to customers trading between Türkiye and Europe.
Despite the declining EBIT-margin of Ekol Logistics in recent years, DFDS remains optimistic about the future financial performance of the newly acquired business. The company has outlined a detailed business and integration plan to improve the EBIT-margin to around 5% by the end of 2027. This plan includes leveraging synergies, enhancing operational efficiency, and implementing strategic initiatives across three phases to drive growth and profitability.
Additionally, DFDS has secured the necessary regulatory approvals for the acquisition and will finance the transaction through a combination of loan financing and existing cash funds. The company is committed to ensuring a smooth integration process and maximizing the benefits of this strategic move.
DFDS will manage the acquired business as a separate unit within its Logistics Division, with plans to integrate select country organizations into the existing Continent business unit. By leveraging the strengths of both companies and focusing on operational excellence, DFDS aims to drive sustainable growth and create value for its stakeholders.
The completion of the acquisition underscores DFDS’ commitment to expanding its presence in high-growth markets and strengthening its position as a leading provider of transport and logistics solutions in Europe. With a clear strategic vision and a dedicated team in place, DFDS is well-positioned to capitalize on the opportunities presented by this transformative acquisition.