DP WORLD has acquired 100% of syncreon for an enterprise value of US$1.2 billion. This transaction is subject to customary completion conditions and is expected to close in the second half of 2021.
Sultan Ahmed Bin Sulayem, group chairman and CEO of 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”.
The acquisition will enable DP World to deliver end-to-end solutions to cargo owners
syncreon provides specialised value-added warehousing and distribution systems through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services.
syncreon has a global presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies. The group focuses on two key segments. Firstly, large technology customers to enable e-commerce and omni-channel fulfilment and aftermarket services, and secondly automotive companies for reception of materials, warehousing, inventory management, kitting/sequencing for line feeding, and export packaging.
In FY2020, the group reported revenue of $1.1 billion with 57% generated in EMEA (predominantly Europe) and 42% in North America. syncreon has longstanding partnerships with customers averaging 18 years, and high contracts renewal rates.
Sultan Ahmed Bin Sulayem said, “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.”