DP World Expands Again With Purchase of Logistics Firm Syncreon
DP World has advanced its ambition to dominate logistics with the acquisition of US firm Syncreon.
Syncreon is a global logistics provider specializing in the design and operation of complex supply chains for the automotive and technology industries. Dubai-headquartered DP World has announced the acquisition of 100 percent of Syncreon for $1.2 billion (subject to closing).
“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,” said Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO.
He added that Syncreon’s complex solutions capability brings long-term relationships with cargo owners, something that fits with DP World’s vision to provide tech-led supply chain solutions.
“Syncreon’s exposure to the sizable, 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,” said Bin Sulayem.
The company provides specialized warehousing and distribution services, including a variety of manufacturing, export packaging, transportation management, reverse/repair and fulfilment services. At its 90-plus sites in 19 countries, Syncreon focuses on two key segments: e-commerce/tech company fulfilment and automotive supply chain, including the reception of materials, warehousing, inventory management, kitting/sequencing for line feeding and export packaging. It has growing businesses in consumer goods, healthcare and industrial markets. In the 2020 financial year, Syncreon reported revenue of $1.1 billion.
“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,” said Brian Enright, Syncreon CEO.
DP World, which has been on an unbridled acquisition spree of logistics firms and ports terminals, has not hidden its ambitions to dominate the flow of global trade from its Dubai hub. The company currently handles 10 percent of the world’s global container traffic and operates some 80 ports. as well as marine and inland terminals in more than 40 countries across six continents. In 2020 it generated $8.5 billion in revenues and $879 million in profit.