DP World is acquiring US-based global logistics provider syncreon in a deal valued at US$1.2 billion — expected to close in the second half of 2021 subject to customary completion of conditions. 

Syncreon specializes in the design and operation of complex supply chains for the high growth automotive and technology industries. It also provides specialized value-added warehousing and distribution solutions through a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services.

The company has a presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies.

DP World said in a statement that Syncreon focuses on large technology customers to enable e-commerce and omni-channel fulfilment and aftermarket services, and 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 2020, Syncreon reported revenue of US$1.1 billion with 57% generated in EMEA (predominantly Europe) and 42% in North America. It also has longstanding partnerships with customers averaging 18 years, and high contracts renewal rates.

Syncreon's complex solutions capability to boost DP World

"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.

He added that 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 DP World chief added.

The acquisition will be funded from existing available resources. DP World said it 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.

Meanwhile, Brian Enright, CEO of Syncreon, noted how the firm will benefit from the group's expertise in the wider supply chain and excellent relationships with cargo owners through the acquisition.

"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,"  Enright added.