NTG Nordic Transport Group Acquires DTK
NTG Nordic Transport Group A/S, commonly known as NTG, has proudly announced a significant milestone in its growth journey by signing an agreement to acquire 100% of the shares in Danish-based DTK BE Holding ApS. This strategic move showcases NTG's commitment to enhancing its logistics capabilities.
About DTK and its Services
DTK is well-regarded in the logistics sector as a full-service provider, specializing in both full-load and part-load general cargo solutions, alongside temperature-controlled road freight services. They also extend a range of logistics and warehousing solutions, catering to a loyal customer base. With its headquarters located in Padborg, DTK operates across eight different locations, showcasing its extensive reach throughout Denmark, Germany, Sweden, and the UK. The company employs about 195 staff, comprising both white-collar and blue-collar workers.
Financial Overview
For the financial year concluding in December, DTK reported impressive figures, with net revenue hitting DKK 1,156 million and an EBIT of DKK 94 million according to Danish GAAP. It is estimated that, after some adjustments, DTK will contribute around DKK 96 million to NTG's consolidated adjusted EBIT on an IFRS basis over the next year. Additional details about the impact on NTG's financial outlook for the year ahead will be shared post-transaction closure.
Transaction Insights
The acquisition will see NTG acquiring DTK for a total valuation of DKK 620 million, set on a cash and debt-free basis. It is noteworthy that the IFRS 16 lease liabilities amount to approximately DKK 102 million, which will not influence the overall purchase price. Furthermore, NTG anticipates annual synergies of about DKK 24 million once DTK is fully integrated into its system, funded entirely through existing credit facilities. The process is currently awaiting merger control approval and is projected to finalize in the second quarter of this year.
Strategic Importance of the Acquisition
The acquisition of DTK strategically positions NTG to bolster its market presence across the Nordic region. Integrating DTK's operations allows NTG to enhance its existing services, particularly in the temperature-controlled transportation sector, wherein DTK has established a leading reputation.
Mid- to Long-Term Goals
Following a merger of three Danish road entities that formed NTG Road A/S in early 2024, this acquisition serves as a continuation of NTG's growth strategy. The union of DTK's services with NTG's operational capabilities is anticipated to unlock further efficiencies, promoting a robust platform for organic growth and future acquisition possibilities.
Independent Operations for DTK
DTK's renowned temperature-controlled logistics division will retain its operational independence while benefiting from NTG's resources to foster growth and maximize untapped market potential. Key employees from DTK will reinvest in this division, ensuring expertise and continuity.
Leadership Insights
Jesper Petersen, the CEO of Road & Logistics at NTG, expressed his enthusiasm about the acquisition, stating, "Welcoming DTK strengthens our Nordic market position, providing us with invaluable expertise and capabilities. The decentralized business model of DTK, coupled with their dedication to service quality and strong customer bonds, underscores their impressive track record. We look forward to the new prospects this partnership will unveil."
About NTG
NTG is a global leader in freight forwarding, delivering customized transport solutions across diverse modes including road, rail, air, and ocean. The company boasts a workforce of around 3,000 dedicated employees spanning more than 25 countries, servicing a broad array of clients worldwide.
About DTK
As a prominent Danish freight forwarder, DTK specializes in road and logistics services, operating robustly with a workforce of approximately 195 employees across various locations in Denmark, Germany, and the UK.
Contact Information
For additional inquiries regarding this acquisition, please reach out to:
Sebastian Rosborg, Head of Investor Relations
+45 42 12 80 99
Email: Sebastian.rosborg@ntg.com
Birgitte Hansson, Head of Marketing & Communication
+45 42 12 80 90
Email: press@ntg.com
Frequently Asked Questions
What prompted NTG to acquire DTK?
The acquisition strengthens NTG's market presence and enhances its logistics capabilities, particularly in temperature-controlled transportation.
How much did NTG pay for DTK?
NTG valued the acquisition at DKK 620 million on a cash and debt-free basis.
What financial impact is DTK expected to have on NTG?
DTK is anticipated to contribute approximately DKK 96 million to NTG’s consolidated adjusted EBIT over the next year.
Will DTK operate independently under NTG?
Yes, DTK's temperature-controlled division will continue to function independently while benefiting from NTG's support.
When is the acquisition expected to close?
The acquisition is projected to finalize in the second quarter of this year, pending merger control approval.
