With the major integration of DSV and Panalpina still underway, DSV Panalpina intends to continue pursuing growth through large mergers and acquisitions, with additions to its Road business likely next on the company’s radar. The news comes following the company’s most recent Board strategy session, hosted several weeks ago.
“Once we’re 12-18 months into the integration of Panalpina, and we can affirm we’re on track, then I think we’ll start to talk about the possibility of boosting organic growth through another M&A.,” DSV Panalpina Air and Sea chairman Dr. Thomas Plenborg said. “The industry is still very fragmented, and there’s lots of scope for further consolidation.”
This strategy plays into the company’s overall goals of sustaining its recent growth in revenue and profit, while also mitigating risk. However, Plenborg suggested DSV will shift some its recent focus allotted to expanding its Air & Sea segment towards developing its Road business.
“When the Road division’s new Transport Management System is fully developed and ready to scale, additions within this business area will be attractive for us,” Plenborg said. “It’s all about increasing our network – within Road as well,” he stated.
Further details regarding these plans are yet to be determined, though with this announcement more news can be expected as the DSV-Panalpina integration continues.