DP World has bought US-based global logistics provider Syncreon for US$1.2 billion.The deal is expected to close in the second half of 2021.
Syncreon specializes in the design and operation of complex supply chains for the automotive and technology industries. It provides specialized value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfillment services.
Syncreon has 91 sites in 19 countries and serves two key segments. It enables e-commerce and omni-channel fulfilment and aftermarket services for large technology customers. Secondly it supports automotive companies with reception of materials, warehousing, inventory management, kitting/sequencing for line feeding, and export packaging.
In its 2020 fiscal year 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 contract renewal rates.
“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 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.”
The acquisition 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,” said Brian Enright, CEO of Syncreon.
“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”.