XPO Logistics enters agreement to acquire Norbert Dentressangle
One of the fastest growing providers of transportation logistics in North America, XPO Logistics, has entered into a definitive agreement with Norbert Dentressangle to acquire a majority interest in the Lyon based global provider of contract logistics.
The transaction, with a total value of €3.24 billion, has been unanimously approved by XPO’s board of directors and Norbert Dentressangle’s supervisory board. It will transform XPO into a top ten worldwide logistics company and a leading European outsourced e-fulfilment provider. The deal is expected to close by the end of this quarter.
XPO will gain global scale in freight brokerage and managed transportation, two of its core services, with the ability to employ technology and best practices. It intends to deploy its proprietary Freight Optimizer platform in Europe to facilitate best-in-class carrier sourcing and customer service.
Norbert Dentressangle currently generates over €1 billion of freight brokerage revenue annually. Road transport in its primary markets of the United Kingdom, Spain and France is an estimated €95 billion opportunity.
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.
It 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.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said: “This is a defining moment in the growth of XPO. Our planned acquisition of Norbert Dentressangle will catapult XPO to a top ten global logistics company.
“It will more than triple our EBITDA to $545 million and increase our revenue to about $8.5 billion upon completion of the tender offer, nearly achieving our 2017 financial targets two years ahead of plan.
“The acquisition of Norbert Dentressangle is a major leap forward, but we’re still in the early innings of our long-term growth plan.”
Hervé Montjotin, chairman of the executive board and chief executive officer of Norbert Dentressangle, said: “By joining XPO, we will become part of an organisation that shares the ambition that has guided us since the creation of Norbert Dentressangle 36 years ago: to become a global partner able to effectively support our customers in the management of their supply chains.
“As XPO’s platform for growth in Europe, we can continue to pursue this goal on an even larger scale, to the benefit of our customers and employees. I am proud to lead this growth for XPO, together with the current management board.”
Posted on: May 5th 2015