DP World has acquired 100% of US-based global logistics provider syncreon for an enterprise value of $1.2 billion.
The terminal operator said syncreon specialises in the design and operation of complex supply chains for the high growth automotive and technology industries.
The company provides specialized value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services.
It focuses on two key segments. Firstly, large technology customers to enable e-commerce and omni-channel fulfilment and aftermarket services, and secondly automotive companies for reception of materials, warehousing, inventory management, kitting/sequencing for line feeding, and export packaging.
This is complemented by a growing presence serving customers in Consumer Goods, Healthcare and Industrial Markets.
In Fiscal Year 2020 (FY2020), the group reported revenue of $1.1 billion with 57% generated in EMEA (predominantly Europe) and 42% in North America.
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.
“syncreon’s complex solutions capability brings strong long-term relationships with cargo owners, which fits with DP Worlds vision to provide smart tech-led supply chain solutions to enable trade across key markets.
“syncreon’s exposure to the sizeable, fast-growing technology and automotive industries offers significant growth opportunities over the medium to long term.
“We aim to build on this platform to deliver greater scale and provide compelling value add supply chain solutions to cargo owners across a wider market.”
The acquisition will be funded from existing available resources. DP World continues to make positive progress on its capital recycling programmes and remains fully committed to its leverage target of below 4.0x Net Debt/EBITDA by the end of 2022.
Brian Enright, CEO of syncreon, also commented, “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”.