Global supply chains resemble intricate puzzles, where each piece plays a critical role. When a piece is strategically placed, the entire structure gains stability and scalability. Recently, Danish logistics giant DSV executed two acquisitions that exemplify such strategic positioning—enhancing existing operations while seizing future market opportunities.
DSV Acquires S&M Moving Systems West and Global Diversity Logistics
In early 2024, Denmark-based third-party logistics provider (3PL) DSV announced the completion of its acquisitions of two U.S. freight and logistics firms—S&M Moving Systems West (S&M) and Global Diversity Logistics (GDL). While financial terms remain undisclosed, DSV emphasized the acquisitions' multidimensional benefits:
- Bolstering semiconductor industry expertise: S&M’s specialized logistics capabilities will strengthen DSV’s position in the high-growth semiconductor sector, where precision and reliability are paramount.
- Optimizing Phoenix-Mesa Gateway Airport operations: The acquisitions align with DSV’s existing hub at Arizona’s Phoenix-Mesa Gateway Airport, enhancing regional logistics efficiency.
- Expanding cross-border Latin America services: With rising demand for U.S.-Latin America trade solutions, DSV aims to offer more agile and efficient routes.
The deals are expected to close next month. S&M and GDL—family-owned and headquartered in Phoenix and Chandler, Arizona—operate 11 branches across Oregon and Arizona, employing approximately 130 staff. Their services span:
- Domestic U.S. road freight
- International air and ocean freight
- Warehousing
- Event logistics
- Semiconductor-specific solutions
DSV Leadership on the Strategic Vision
Niels Larsen, President of DSV Air & Sea U.S., stated: “These acquisitions underscore our commitment to strengthening our U.S. footprint. They also provide entry into the semiconductor sector’s specialized logistics ecosystem.”
DSV highlighted the operational synergy between the companies, noting the acquisitions will expand its U.S. network—particularly in Arizona—by integrating S&M and GDL’s assets with DSV’s existing air, ocean, road, and warehousing divisions.
The move also complements DSV’s Phoenix-Mesa Gateway Airport expansion and growing air cargo operations in Arizona. As demand for Latin America services rises, DSV aims to position Arizona as a reliable alternative to traditional hubs like Miami. Robert Greene, Executive Vice President of DSV Road U.S., added: “With dual gateways to Latin America, we’re better equipped to handle peak demand and congestion.”
Industry Analysts Weigh In
Evan Armstrong, President of supply chain consultancy Armstrong & Associates, noted DSV’s aggressive acquisition history: “These smaller deals support DSV’s Mexico cross-border growth and North American network expansion. Mexico is a key beneficiary of nearshoring trends.”
DSV’s recent major acquisitions include:
- 2016: Purchased UTi Worldwide for $1.35 billion.
- 2019: Merged with Panalpina.
- 2021: Acquired Agility’s Global Integrated Logistics division.
These moves propelled DSV to become the world’s third-largest 3PL, with $29 billion in revenue. North America accounts for nearly 30% of its global operations, supported by 65 warehouses spanning 16.4 million square feet.
Ben Gordon, Managing Partner at Cambridge Capital and Ben Gordon Strategic Advisors, framed the acquisitions as part of broader supply chain convergence: “DSV is layering capabilities—semiconductors, U.S.-Mexico trade, and LatAm expansion. Clients increasingly seek partners who can do more across the supply chain.”
The Strategic Implications
DSV’s acquisitions reflect a forward-looking strategy to capitalize on macroeconomic shifts:
- Semiconductor logistics: S&M’s expertise in handling high-value, sensitive semiconductor shipments addresses a critical industry need.
- Geographic optimization: Strengthening Arizona operations positions DSV to serve the Southwest and Latin America more effectively.
- EV industry tailwinds: Arizona’s emergence as an electric vehicle manufacturing hub opens doors for specialized logistics solutions.
- Integrated services: Combining air, ocean, road, and warehousing under one umbrella enhances DSV’s end-to-end offerings.
By aligning these acquisitions with global trade dynamics—from semiconductor demand to nearshoring trends—DSV reinforces its position as a logistics leader poised for long-term growth.