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Deal expected to close in the second half of 2021
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World says it continues to make progress on its capital recycling programs
Dubai Ports World has announced the acquisition of 100 percent of syncreon, a US-based supply chains provider, for an enterprise value of $1.2 billion.
The deal is expected to close in the second half of this year and will be funded from existing available resources, DP World said in a statement.
The statement said the syncreon has a global presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies. Last year, the group reported revenue of US$1.1 billion with 57 percent generated in EMEA (predominantly Europe) and 42 percent in North America.
DP World said it continues to make progress on its capital recycling programs and “remains fully committed to its leverage target of below 4.0x Net Debt/EBITDA by the end of 2022”.
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, Bloomberg reported.
The Bloomberg report said the port operator 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, the report said, citing people familiar with the matter.