DP World acquires Syncreon, a US supply chain solutions provider

 DP World Group announced the acquisition of 100 percent of Syncreon for $1.2 billion. This transaction is subject to customary terms of completion and is expected to be completed in the second half of 2021.

Synchron, a leading US-based logistics provider, specializes in the design and operation of supply chains for the high-growth automotive and technology sectors. The company provides customized value-added warehousing and distribution solutions through a diverse range of manufacturing, export packaging and management services. Transportation, replacement or repair services and fulfillment of conditions.

Syncreon enjoys global standing with 91 locations in 19 countries and serves a wide variety of multinational corporate clients.

The group focuses on two main customer segments: large technology enablers for e-commerce, one-stop channels, and automotive companies for material receipt, warehousing, inventory management and export packaging.

In fiscal 2020, the group reported $1.1 billion in revenue, with 57 percent in EMEA (mostly Europe) and 42 percent in North America, and has long-term partnerships with clients averaging 18 years and high contract renewal rates.

Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World Group, expressed his happiness to announce the acquisition of Synchron, which will add a great strategic value to DP World Group due to its strong capabilities in the field of logistics solutions, which will allow DP World to provide comprehensive solutions to cargo owners. .

Syncreon's ability to deliver complex, advanced solutions attracts strong, long-term relationships with cargo owners that fit in with DP World's vision of providing smart, technology-based supply chain solutions to enable trade across key markets.

Syncreon's large and rapidly growing niche in the technology and automotive industries offers significant growth opportunities in the medium to long term.. It aims to build on this platform to offer a broader business scope and provide compelling value-added supply chain solutions to merchandise owners across a larger network of markets.

The acquisition will be funded from existing available resources. The DP World Group continues to make positive progress in its capital recycling programs and remains fully committed to achieving its goal of leverage of less than four times net debt/earnings before interest, tax and depreciation. consumption by the end of 2022.

Brian Enright, CEO of Syncreon, expressed their enthusiasm to join the DP World Group, stressing that Syncreon will benefit from the group's extensive experience in the broader supply chain and excellent relationships with cargo owners.. It shares with it the vision of serving its customers through Eliminate deficiencies and provide value-added solutions.

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