Araweelo News Network.
Dubia (ANN)-DP World has announced that it has acquired a 100 percent stake in US-based Syncreon, valued at US $ 1.2 billion. This transaction is subject to custom completion requirements and is expected to close on 2H2021, according to a press release issued by DP World.
US-based Syncreon is a global logistics specialist specializing in the design and operation of high-tech hardware chains and Automotive Growth. Syncreon specializes in warehousing solutions and cost distribution solutions through product diversification, export packaging, transportation management, and reverse repair and fulfillment services.
“We are the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions.” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World,
Explaining the importance of DP World’s acquisition of Syncreon in the United States, he said, “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.”
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.” he added
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. Says Sultan Ahmed Bin Sulayem explaining the company they took over from the US.
We deliver these services through an interconnected global network of 148 business units in 60 countries across six continents, with a significant presence both in high-growth and mature markets. Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work. said DP World in a press release.
“Our dedicated, diverse and professional team of more than 54,620 employees from 137 nationalities are committed to delivering unrivalled value to our customers and partners. We do this by focusing on mutually beneficial relationships – with governments, shippers, traders, and other stakeholders along the global supply chain relationships built on a foundation of mutual trust and enduring partnership. ” as stated in the press release.
We think ahead, anticipate change and deploy industry-leading digital technology to further broaden our vision to disrupt world trade and create the smartest, most efficient and innovative solutions, while ensuring a positive and sustainable impact on economies, societies and our planet. He added a press release.
Also Brian Enright, director of syncreon, said, “We are excited to join the DP World group as we believe that syncreon will benefit from the group’s significant expertise in the wider supply chain and excellent relationships with cargo owners. We share the vision of serving our customers through removing inefficiencies and delivering value adds 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”
Syncreon Company has a global presence across 91 sites in 19 countries and services a large and diversified portfolio of customers made up of multinational companies. The group focuses on two key segments. Firstly, large technology customers to enable eCommerce and omni-channel fulfilment and after market 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 $1.1 billion, with 57% generated in EMEA (predominantly Europe) and 42% in North America. Syncreon has long-standing partnerships with customers averaging 18 years, and high contracts renewal rates.
The move comes a week after Dp World inaugurated the new container terminal at Berbera Port of Somaliland, following completion of the first phase of the port’s expansion as part of its development into a major regional trade hub to serve the Horn of Africa.
Published Araweelo News Network.
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By Arraale M Jama Freelance Journalist and Human Rights activist.