Dubai’s DP World announced a 100% acquisition of Syncreon for an enterprise value of $1.2bn. The acquisition will be self-funded and expected to close in the next six months. Syncreon is a US-based global logistics provider specializing in design and operation of complex supply chains for the high growth automotive and technology industries. Syncreon has a presence in 91 sites across 19 countries and in FY2020, reported revenues of $1.1bn, of which 57% was from EMEA, majorly Europe and 42% in North America. The CEO of DP World said, “Syncreon’s complex solutions capability brings strong long-term relationships with cargo owners, which fits with DP World’s vision to provide smart tech-led supply chain solutions to enable trade across key markets.”
DP World said it was progressing on its capital recycling programs and plans to bring its leverage target to below 4x net adjusted debt/EBITDA vs. 7.8x estimated by Moody’s as of May 2021. Reuters notes that they have hired banks to help sell a minority share in its Jebel Ali Free-zone that could be worth a few billion dollars.
DP World’s bonds were stable – its 3.75% 2030s were at 107.9 yielding 2.7% and its 3.908% 2023s at 105.4, yielding 1.03%.
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