DP World has announced the acquisition of 100 percent of syncreon for an enterprise value of $1.2 billion.
The transaction is subject to customary completion conditions and is expected to close in second half of 2021.
Syncreon is a US based global logistics provider that specializes in the design and operation of complex supply chains for the high growth automotive and technology industries. It provides specialized value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services.
Syncreon has a global presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies, state news agency WAM reported.
In FY2020, the group reported revenue of $1.1 billion with 57 percent generated in EMEA (predominantly Europe) and 42 percent in North America. It has longstanding partnerships with customers averaging 18 years, and high contracts renewal rates.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: "We are delighted to announce the acquisition of syncreon, which adds significant strategic value to DP World given its strong logistics solutions capability, and will allow DP World to deliver end-to-end solutions to cargo owners."
The acquisition will be funded from existing available resources.
DP World continues to make positive progress on its capital recycling programs and remains fully committed to its leverage target of below 4.0x Net Debt/EBITDA by the end of 2022.
For his part, Brian Enright, CEO of syncreon, said: "We are excited to join the DP World group as we believe that syncreon will benefit from the group’s significant expertise in the wider supply chain and excellent relationships with cargo owners. We share the vision of serving our customers through removing inefficiencies and delivering value add solutions. While we have enjoyed great success over the years, we believe being part of DP World will enable us to take the business to other markets."
