AMKBY AP Moller Maersk AS (PK)

By Dominic Chopping

AP Moeller-Maersk AS on Monday announced the 2.6 billion Swedish kronor ($279 million) acquisition of Swedish trade-and-customs specialist KGH Customs Services AB.

The Danish shipping company has agreed to buy KGH from Bridgepoint Development Capital as it looks to boost its capabilities as an integrated container logistics company, offering end-to-end supply chain services.

"There are no end-to-end solutions without customs clearance," said Maersk's Ocean & Logistics Chief Executive Vincent Clerc.

"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."

KGH is based in Gothenburg, Sweden, and reported recurring earnings before interest, tax, depreciation and amortization of SEK160 million in 2019 on revenue of SEK890 million. It has 775 employees and a yearly business of 1.98 million customs clearances.

Following the acquisition, Maersk said annual Ebitda synergies from the combination are expected to amount to approximately SEK50 million-SEK75 million.

Closing of the acquisition is subject to customary regulatory approvals and until then Maersk and KGH will remain two separate companies, conducting their business as usual.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 06, 2020 03:57 ET (07:57 GMT)

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