DP World Nears $1.2 Billion Deal for Logistics Firm Syncreon
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DP World is nearing an acquisition of Syncreon Holdings Ltd. in a deal that could value the U.S. supply chain services company at about $1.2 billion, according to people familiar with the matter.
The Dubai-based port operator is in advanced talks on a potential takeover of closely held Syncreon, the people said, asking not to be identified discussing confidential information.
Syncreon provides services including warehouse management, export packing and fulfillment. The company was formed in 2007 when Dublin-headquartered Walsh Western International bought TDS Logistics.
It underwent a financial restructuring during 2019 in which lenders, including the credit arms of CVC Capital Partners and Carlyle Group Inc., took control. Syncreon’s owners began exploring a sale of the Auburn Hills, Mich.-based business earlier this year, Bloomberg News reported at the time.
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No final agreements have been reached, and talks could still drag on or fall apart, the people said. Spokespeople for CVC and DP World declined to comment. Representatives for Carlyle and Syncreon didn’t immediately respond to requests for comment.
DP World is one of the world’s largest operators of marine ports and inland cargo terminals, stretching from gateways in London and Antwerp to hubs in Africa, Russia, India and the Americas. It’s been on an acquisition spree in recent years as it moves toward becoming a more diversified, integrated logistics company.
Meanwhile, it continues to look for ways to cut debt. DP World is considering offering international investors a chance to buy into the Jebel Ali Free Zone, a prized asset that helped transform Dubai into a hub of global trade, people familiar with the matter have said.
A sale of Syncreon would add to the more than $90 billion of transport and logistics deals announced this year, according to data compiled by Bloomberg. That’s up almost threefold on the same period in 2020.
Syncreon Holdings ranks No. 36 on the Transport Topics Top 50 list of the largest logistics companies in North America.
Kiel Porter, Gillian Tan and Archana Narayanan were the primary contributors to this report.
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