Danish shipping and logistics firm DFDS said on Tuesday it has agreed to buy the international transport network of Turkey's Ekol Logistics for 1.9 billion crowns ($277 million) and lifted its sales growth forecast for the year.
The network connects Turkey and Europe and the acquisition will add road transport to its Mediterranean ferry network, DFDS said in a statement, adding that it was in line with its strategy to move goods in trailers by ferry, road and rail.
"Turkey's role as a manufacturing hub for Europe will become even stronger in the future as nearshoring drives supply chains closer to end markets," DFDS CEO Torben Carlsen said.
The two groups launched talks about a deal in 2022 and it was approved by the Turkish competition agency last year. The transaction is still conditional upon European Union approval.
The Turkey-Europe transport market is expected to grow around 14% annually until 2028, according to DFDS.
"The acquisition thereby expands DFDS' network to a high-growth region," the Danish company said.
DFDS said that assuming it finalizes the deal early in the fourth quarter, it now forecasts full-year sales growth of 8-11% against an earlier forecast of 5-8% growth.
Its shares were up 2% at 1207 GMT.
($1 = 6.8620 Danish crowns)
(Reuters - Reporting by Anna Ringstrom; Editing by Louise Rasmussen and Alexander Smith)
