XPO Logistics to buy Norbert Dentressangle
XPO Logistics is set to buy a majority interest in France-based logistics company Norbert Dentressangle and launch a tender offer for the remaining shares. Headquartered in Lyon, Norbert Dentressangle has 662 locations and approximately 42,350 employees.
In a statement published yesterday (28 April), XPO said that Norbert Dentressangle’s transportation and logistics services complement XPO’s offerings in contract logistics, freight brokerage and global forwarding.
The total transaction value is approximately €3.24 billion, including €1.08 billion of net debt. The board of directors of XPO and the supervisory board of Norbert Dentressangle have unanimously approved the transaction.
Company founder Norbert Dentressangle will be selling his family’s 67% stake to XPO at an agreed price of €217.50 per share, which is a premium of 34% compared to the closing price on Monday (27 April).
Once antitrust clearances have been received, XPO will launch an all-cash simplified tender offer to acquire the remaining outstanding shares of Norbert Dentressangle at the same price.
Hervé Montjotin, chairman of the executive board and chief executive officer of Norbert Dentressangle, will serve as chief executive officer of XPO’s European business and president of the parent company. XPO intends to maintain the European headquarters of Norbert Dentressangle in Lyon. The company added that it “also intends to maintain the headquarters and centre of decision of Norbert Dentressangle’s European logistics business in France, as well as Norbert Dentressangle’s transportation business in the department of Drôme”.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, commented: “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.”
Explained the rationale for the deal, XPO said: “Norbert Dentressangle offers services that strongly mirror XPO’s portfolio: contract logistics, including e-fulfillment; freight brokerage; an asset-light palletized network; freight management; dedicated and owned truckload; and global freight forwarding. XPO intends to use the acquired operations as a platform to grow its business in Europe.”
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 said that it intends to build on this base and “make substantial investments in the growth of its acquired European operations”.
When the acquisition is completed, XPO will rebrand the acquired operations under the single global name XPO Logistics. The company expects that it will then have “combined scale” of approximately 52,350 employees at 863 locations in 27 countries.
