DFDS acquires Ekol Lojistik's international transport business

DFDS has signed an agreement to acquire Ekol Lojistik's international transport division, which operates freight transport between Turkey and Europe with offices and facilities in 10 European countries. The international transport division of Ekol Lojistik has 3,700 employees and generated revenue of EUR 470 million (DKK 3.5 billion) in 2023. The purchase price was set at EUR 260 million (DKK 1.9 billion).

Through this acquisition, DFDS adds road transport to its existing Ro-Ro routes in the Mediterranean, expanding the proven sea-road business model that DFDS operates in Northern Europe to cover the region. Additionally, DFDS's logistics network is being expanded across Europe.

DFDS Chief Executive Officer Torben Carlsen commented: "This acquisition is a perfect strategic fit for DFDS. Using combinations of road, sea and rail transport to reliably and efficiently transport large volumes of trailers is our core business. Moreover, as supply chains shift towards closer markets, we believe Turkey's role as a production center for Europe will strengthen further in the future."

Ahmet Musul, founder and Chairman of the Board of Ekol Lojistik, stated: "I am very pleased that Ekol Lojistik's international transport network and all our talented and dedicated employees will enter a new era with DFDS, our long-standing business partner. This development has the potential to make transport infrastructure between Turkey and Europe more efficient and further enhance Turkey's attractiveness as a production center."

The Turkey-Europe transport market is expected to grow at an average annual rate of 14% through 2028, supported by the shift of supply chains to closer markets in Europe.

With the addition of Ekol Lojistik's international transport network, DFDS will be able to offer end-to-end transport solutions between Turkey and Europe, including distribution services and warehousing, to Turkish companies and European and global manufacturers with production or assembly facilities in Turkey.

Ekol Lojistik's international transport division generated revenue of EUR 470 million (DKK 3.5 billion) in 2023. EBITDA margin declined from 4.8% in 2022 to 2.5%. A business and integration plan exists to increase EBITDA margin to around 5% by 2027.

Subject to approval by EU merger control authorities and contractual conditions, the acquisition is expected to be completed in early fourth quarter of 2024. The transaction was approved by Turkey's Competition Authority on 28 July 2023.