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DP World has acquired syncreon for an enterprise value of US$1.2bn
Syncreon is a US-based global logistics provider that specialises in the design and operation of complex supply chains for the high growth automotive and technology industries. syncreon provides specialised value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services.
The group focuses on two key segments. Firstly, large technology customers to enable eCommerce 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.
This is complemented by a growing presence serving customers in Consumer Goods, Healthcare and Industrial Markets. In FY2020, the group reported revenue of US$1.1bn 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, group chairman and CEO, DP World, said, “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. 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. DP World continues to make positive progress on its capital recycling programmes and remains fully committed to its leverage target of below 4.0x Net Debt/EBITDA by the end of 2022.