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DP World completes $1.2bn deal for logistics firm Syncreon

DP World completes $1.2bn deal for logistics firm Syncreon

DP World has completed an acquisition of Syncreon Holdings Ltd. in a deal that values the US supply chain services company at $1.2 billion. The Dubai-based port operator confirmed the takeover on Thursday, which is subject to customary completion conditions and is expected to close in the second half of this year. Syncreon provides services

DP World has completed an acquisition of Syncreon Holdings Ltd. in a deal that values the US supply chain services company at $1.2 billion.

The Dubai-based port operator confirmed the takeover on Thursday, which is subject to customary completion conditions and is expected to close in the second half of this year.

Syncreon provides services including warehouse management, export packing and fulfilment. The company was formed in 2007 when Dublin-headquartered Walsh Western International bought TDS Logistics.

DP World is delighted to announce the acquisition of US-based @syncreon – specialists in global automotive and technology supply chains – strengthening our end-to-end logistics offering and delivering greater scale and compelling value for customers. https://t.co/qV23Ec3AtF— DP World (@DP_World) July 1, 2021

In a statement from DP World it said the deal will be funded from “existing available resources”.

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 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.”

Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World.

Syncreon underwent a financial restructuring during 2019 in which lenders, including the credit arms of CVC Capital Partners and Carlyle Group Inc., took control. Syncreon’s owners began exploring a sale of the Auburn Hills, Michigan-based business earlier this year, Bloomberg News reported at the time.

In the last financial year the group reported revenue of $1.1bn with 57 percent generated in EMEA (predominantly Europe) and 42 percent in North America.

DP World is one of the world’s largest operators of marine ports and inland cargo terminals, stretching from gateways in London and Antwerp to hubs in Africa, Russia, India and the Americas. It’s been on an acquisition spree in recent years as it moves toward becoming a more diversified, integrated logistics company.

Meanwhile, it continues to look for ways to cut debt. DP World is considering offering international investors a chance to buy into the Jebel Ali Free Zone, a prized asset that helped transform Dubai into a hub of global trade, people familiar with the matter have said.

DP World records 10.2% Q1 volume growth across global portfolio

Company’s Jebel Ali terminal handled 3.5 million 20-foot equivalent units in the first three months of the year, up 2.6% year-on-year

DP World said Thursday it “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”.

The sale of Syncreon will add to the more than $90bn of transport and logistics deals announced this year, according to data compiled by Bloomberg. That’s up almost threefold on the same period in 2020.

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