Dubai’s DP World acquires US-based logistics provider

DP World has announced a 100 per cent acquisition of US-based logistics provider syncreon for an enterprise value of $1.2bn.

The transaction is subject to customary completion conditions, and is expected to close in second half of 2021. The acquisition will be funded from existing available resources, official news agency WAM reported.

DP World continues to make progress on its capital recycling programmes and is committed to its leverage target of below 4.0x net debt/EBITDA by the end of 2022.

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

Syncreon specialises in the design and operation of complex supply chains for the automotive and technology industries. Syncreon provides specialised value-added warehousing and distribution solutions through manufacturing, export packaging, transportation management, reverse/repair and fulfilment services. It has a global presence across 91 sites in 19 countries and services a diversified portfolio of customers made up of multinational companies, the statement said.

In FY2020, the group reported revenue of $1.1bn with 57 per cent generated in EMEA (predominantly Europe) and 42 per cent 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.”

“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. 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,” added Brian Enright, CEO of syncreon.