DP World snaps up U.S. logistics provider for $1.2 billion
Dubai-based port operator DP World has acquired U.S. logistics company Syncreon for an enterprise value of $1.2 billion.
As disclosed, the transaction, which will be funded from the existing available resources, is expected to close in the second half of the year, subject to customary closing conditions.
“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,” said Sultan Ahmed Bin Sulayem, DP World group chairman and CEO.
He also added that the deal “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 … relationships with cargo owners,” Brian Enright, CEO of Syncreon stated.
Michigan-based Syncreon provides warehousing and distribution solutions in 91 facilities across 19 countries.
Furthermore, the company is focused on designing and operating supply chains for the automotive and technology industries.
In 2020, Syncreon reported revenue of $1.1 billion with 57% generated in Europe, the Middle East and Africa (predominantly Europe) and 42% in North America.
Last month, DP World inaugurated a new container terminal at Berbera Port with the Government of Somaliland.