Ferry logistics giant DFDS is selling some of its trailer and truck assets
In late November last year, shipping Logistics group DFDS announced the completion of the acquisition of Turkish freight forwarder Ekol Logistics on new terms, which can be described as twists and turns!
However, just three months after the acquisition, DFDS had to balance its finances by laying off Ekol.
DFDS has announced that the integration and financial improvement of Ekol Logistics "is progressing as planned, with a short-term goal of breaking even by the end of 2025." However, the financial consolidation of Ekol has now resulted in the dismissal of 125 employees.
Torben Carlsen, CEO of DFDS, explained in the announcement that the acquisition of Ekol Logistics is an important link in supporting Turkey's growth as a manufacturing hub and trading partner in Europe.
"However, the company's financial performance needs to improve across the board, which requires tough decisions," Mr Carlson said.
"As a result, the company has initiated a restructuring and unfortunately we must part ways with 125 valued and highly skilled office staff."
DFDS said the ongoing overhaul includes organisational, commercial and operational initiatives. Ekol's organizational structure at its Istanbul headquarters has been reviewed and will be "adapted to current financial and market conditions."
DFDS said that the operating model for managing the transport corridor between Turkey and the organization of European countries has been simplified to focus more on balancing traffic, utilization of operational assets and business volume growth.
Ekol's performance last year was so badly affected that ferry and logistics group DFDS had to pre-inform the stock exchange on January 21 of preliminary financial figures for 2024 and a pessimistic forecast for this year's performance.
At the time, Carlson denied to the media that various initiatives taken by the group to improve the earnings of Ekol and other logistics businesses would result in layoffs.
But now, massive layoffs have come, and 125 Ekol employees have lost their jobs!
The large ferry and logistics group had 14,078 employees at the end of the third quarter of last year and added 3,700 through the acquisition of Ekol. In addition, DFDS has also begun to sell its newly acquired surplus shares in Ekol.
According to DFDS, potential cost savings and efficiency improvements have been identified.
"The initial focus is on sizing the equipment fleet (trucks/trailers/containers) and improving operational efficiency," DFDS said in the announcement.
As a result, DFDS is cleaning up and selling idle equipment. At the same time, DFDS is increasing its use of subcontractors for driving.
To date, 278 trailers have been sold, while there are plans to dispose of or replace hundreds of other equipment, including trucks, in 2025.
About Ekol Logistics
Founded in 1990, Ekol Logistics is an integrated logistics company that operates in transportation, contract logistics, international trade, as well as customized services and supply chains, according to the company's website.
The Turkish company has distribution centers in Turkey, Germany, Italy, Greece, France, Ukraine, Romania, Hungary, Spain, Poland, Sweden and Slovenia. The company operates approximately 5,800 owned equipment, including 1,300 trucks, 3,900 trailers and 600 containers. There are 26 storage Spaces in Europe with a total area of 120,000 square meters.
The network is built for intermodal and pure road transport, mainly using internal transport as well as ferry/rail transport provided by third party ferry and rail operators. About 80% of all shipments combine multiple modes of transport. DFDS is the company's main provider of ferry traffic between Turkey and Europe.
In April last year, DFDS signed a share purchase agreement to announce the acquisition of Ekol Logistics' international transport network.
Surprisingly, only half a month after the deal failed, DFDS, as the buyer, changed its mind - to acquire Ekol Logistics at a debt-free price of 1.8 billion Danish krone (about 1.8 billion yuan). At this point, the twists and turns of the freight agency merger and acquisition case came to an end!
However, just three months after the acquisition, DFDS had to balance its finances by laying off Ekol.
DFDS has announced that the integration and financial improvement of Ekol Logistics "is progressing as planned, with a short-term goal of breaking even by the end of 2025." However, the financial consolidation of Ekol has now resulted in the dismissal of 125 employees.
Torben Carlsen, CEO of DFDS, explained in the announcement that the acquisition of Ekol Logistics is an important link in supporting Turkey's growth as a manufacturing hub and trading partner in Europe.
"However, the company's financial performance needs to improve across the board, which requires tough decisions," Mr Carlson said.
"As a result, the company has initiated a restructuring and unfortunately we must part ways with 125 valued and highly skilled office staff."
DFDS said the ongoing overhaul includes organisational, commercial and operational initiatives. Ekol's organizational structure at its Istanbul headquarters has been reviewed and will be "adapted to current financial and market conditions."
DFDS said that the operating model for managing the transport corridor between Turkey and the organization of European countries has been simplified to focus more on balancing traffic, utilization of operational assets and business volume growth.
Ekol's performance last year was so badly affected that ferry and logistics group DFDS had to pre-inform the stock exchange on January 21 of preliminary financial figures for 2024 and a pessimistic forecast for this year's performance.
At the time, Carlson denied to the media that various initiatives taken by the group to improve the earnings of Ekol and other logistics businesses would result in layoffs.
But now, massive layoffs have come, and 125 Ekol employees have lost their jobs!
The large ferry and logistics group had 14,078 employees at the end of the third quarter of last year and added 3,700 through the acquisition of Ekol. In addition, DFDS has also begun to sell its newly acquired surplus shares in Ekol.
According to DFDS, potential cost savings and efficiency improvements have been identified.
"The initial focus is on sizing the equipment fleet (trucks/trailers/containers) and improving operational efficiency," DFDS said in the announcement.
As a result, DFDS is cleaning up and selling idle equipment. At the same time, DFDS is increasing its use of subcontractors for driving.
To date, 278 trailers have been sold, while there are plans to dispose of or replace hundreds of other equipment, including trucks, in 2025.
About Ekol Logistics
Founded in 1990, Ekol Logistics is an integrated logistics company that operates in transportation, contract logistics, international trade, as well as customized services and supply chains, according to the company's website.
The Turkish company has distribution centers in Turkey, Germany, Italy, Greece, France, Ukraine, Romania, Hungary, Spain, Poland, Sweden and Slovenia. The company operates approximately 5,800 owned equipment, including 1,300 trucks, 3,900 trailers and 600 containers. There are 26 storage Spaces in Europe with a total area of 120,000 square meters.
The network is built for intermodal and pure road transport, mainly using internal transport as well as ferry/rail transport provided by third party ferry and rail operators. About 80% of all shipments combine multiple modes of transport. DFDS is the company's main provider of ferry traffic between Turkey and Europe.
In April last year, DFDS signed a share purchase agreement to announce the acquisition of Ekol Logistics' international transport network.
Surprisingly, only half a month after the deal failed, DFDS, as the buyer, changed its mind - to acquire Ekol Logistics at a debt-free price of 1.8 billion Danish krone (about 1.8 billion yuan). At this point, the twists and turns of the freight agency merger and acquisition case came to an end!
