DP World is acquiring US-based global logistics provider syncreon for $1.2bn.
The company provides specialised value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services. It has a global presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies.
In FY2020, the group reported revenue of $1.1Bn with 57% generated in EMEA (predominantly Europe) and 42% in North America.
“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,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.
“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,” he added.
The acquisition by DP World will be funded from existing available resources.
“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,” commented Brian Enright, CEO of syncreon.
The deal is expected to close in the second half of 2021.
Source: Seatrade Maritime