CVC acquires Scan Global logistics from AEA Investors

Wahida Ahmed
06 February 2023

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CVC Capital Partners will acquire a majority stake in Denmark-based Scan Global Logistics (SGL), a transport and logistics services provider, from AEA Investorsт Small Business Fund.

Following the deal, AEA and the management team will co-invest alongside CVC for a minority stake, according to a press release.

Under CVC's ownership, SGL will grow both organically and through acquisitions, CVC said in a press release. SGL is aiming to reach its revenue target of more than USD 5bn over the next few years. According to the press release, the logistics provider's asset-light business model and scalable platform will allow it to grow further in a market with increasing supply chain issues, which is expected to drive demand for freight forwarders like SGL.

There has been an increase in sponsor interest in the logistics space following the pandemic, driven by customers' challenges in managing their operations, as reported by Mergermarket.

CVC invested in SGL via CVC Capital Partners Fund VIII, a EUR 21.3bn vehicle that closed in July 2020, according to Unquote Data.

Mid-market sponsor AEA Investors acquired SGL in 2016 via AEA Small Business Fund II, which held a final close on USD 443m in September 2016, according to Unquote Data.

During AEA's investment period, SGL pursued M&A including the acquisition of Nebraska-based market peer Werner Global Logistics in January 2021. The business has completed 30 bolt-on deals since 2017.

SGL COO and CCO Mads Drejer told Mergermarket last month that it is screening the market for larger acquisitions and expects to close a bolt-on deal by the end of 2Q23.

SGL said in a statement issued in April 2022 that the shareholders of parent company SGL International had appointed Barclays to explore strategic options for the company, including a potential sale.

Company
Founded in 2007 and headquartered in Kastrup in Denmark, SGL employs 3,300 staff across its 150 offices. SGL provides logistics services across the ocean, rail, air, and warehousing spaces. It reports revenues of USD 3bn and has seen an average annual growth in revenues of 33% since 2017, according to the press release.

People
CVC Capital – Christoffer Sjøqvist (senior managing director), Philip Ropcke (director).
AEA Investors – John Cozzi (partner, co-head of small business private equity).
Scan Global Logistics – Allan Melgaard (global CEO, co-founder).

Advisors
Equity – Rothschild (M&A).
Vendor – Barclays (M&A).