Dubai-based multinational logistics company DP World has acquired 100 percent of American logistics firm Syncreon for a total enterprise value of $1.2 billion.
According to the company statement, this transaction is subject to customary completion conditions and is expected to close in the second half of 2021. The acquisition will be funded from existing available resources.
Syncreon specializes in the design and operation of complex supply chain systems for the automotive and technology industries, which are experiencing rapid expansion. Further, it offers a wide range of manufacturing, export packing, transportation management, reverse or repair, and fulfillment services to provide specialized value-added warehousing and distribution solutions.
“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 World’s 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.”
As per the company, “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.″
Mr. 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.”