DP World Nears $1.2 Billion Deal for Logistics Firm Syncreon

(Bloomberg) -- DP World acquired supply chain solutions provider Syncreon Holdings Ltd. for an enterprise value of $1.2 billion as the Dubai-based port operator expands its operations.

The purchase of closely held Syncreon 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. Bloomberg News reported about the potential deal on Wednesday.

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, Michigan-based business earlier this year, Bloomberg News reported at the time.

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.

DP World said Thursday it “continues to make positive 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.”

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.