XPO Logistics to acquire Norbert Dentressangle SA

EUR 3.24 billion transaction makes XPO a top ten worldwide logistics company and leading European outsourced e-fulfillment provider

XPO Logistics, Inc. and Norbert Dentressangle SA have entered into a definitive agreement for XPO Logistics to acquire a majority interest in Norbert Dentressangle and launch a tender offer for the remaining shares. Norbert Dentressangle is a leading global provider of contract logistics, including e-commerce fulfillment; freight brokerage and transportation; and global forwarding services.

The acquisition will more than triple XPO’s EBITDA run rate to approximately USD 545 million, and increase its revenue to approximately USD 8.5 billion, nearly achieving the company’s 2017 targets two years ahead of plan.

-) The transaction will give XPO access to Europe’s largest fleet network through a mix of 7,700 owned trucks, 3,200 trucks contracted through owner-operators and access to an additional 12,000 independent carriers. XPO will gain lane density covering approximately 90% of the eurozone’s GDP-producing regions. Norbert’s transportation business includes €250 million of revenue from dedicated carriage.

-) The transaction will create a top ten worldwide contract logistics company based on combined revenue and 129 million square feet of facility space. Most of the facilities are leased and dedicated to high-value-added warehousing operations, including cold chain and reverse logistics. Norbert Dentressangle’s €2.6 billion contract logistics business has deep customer relationships as evidenced by a 97% customer renewal rate. Approximately 26% of contract logistics revenues are generated in the United States.

-) The combination will increase XPO’s global freight forwarding revenue to approximately USD 425 million annually and provide greater access to Euro-Asia trade lanes. XPO expects the added volume to improve its air and sea transportation buy rates for its customers.

-) XPO intends to make substantial investments in the growth of its acquired European operations, in part through the application of technology. XPO expects its combined annual spend on technology to be approximately USD 225 million after closing.

Headquartered in Lyon, France, Norbert Dentressangle has 662 locations and approximately 42,350 employees, and serves a blue chip customer base that includes some of the world’s largest companies. Norbert Dentressangle’s transportation and logistics services complement XPO’s offerings in contract logistics, freight brokerage and global forwarding. The company had EUR 5.1 billion in pro-forma trailing 12-month revenue for the year-ended December 31, 2014.

XPO Logistics, Inc. facilitates more than 37,000 deliveries a day as one of the fastest growing providers of transportation logistics services in North America. It is a leading provider of highly engineered, technology-enabled contract logistics, the second largest freight brokerage firm, the third largest provider of intermodal services, the largest provider of last mile logistics for heavy goods, and the largest manager of expedited shipments. Additionally, the company has growing positions in managed transportation, global freight forwarding and less-than-truckload brokerage.

XPO, with headquarters in Greenwich, Connecticut, USA, has 201 locations and approximately 10,000 employees. Its two business segments – transportation and logistics – utilize relationships with ground, rail, sea and air carriers and other suppliers to serve over 15,000 customers in the manufacturing, industrial, retail, technology, aerospace, commercial, life sciences and government sectors. The company has more than 4,900 independently owned trucks under contract to its drayage, expedited and last mile subsidiaries, and has access to additional capacity through its relationships with over 30,000 other carriers.

www.xpo.com   www.norbert-dentressangle.com

Quelle: LogEastics
Portal: www.logistik-express.com