XPO logistics has agreed to buy Norbert Dentressangle, in a €3.24bn (£2.32bn) deal that will see XPO become a top-10 global distribution giant and leading European outsourced e-fulfilment provider.
The acquisition, expected to close in the second quarter, will increase XPO’s revenue to about $8.5bn (£5.5bn).
Complimentary service offerings and geographies are expected to facilitate widespread cross-selling to an established base of multinational companies.
Norbert, a leading global provider of contract logistics, is a major supplier to the UK food and drink sector and has customers including Asda, Morrisons, Sainsbury’s and Tesco.
Hervé Montjotin, chairman of the executive board and chief executive officer of Norbert Dentressangle, becomes chief executive officer of XPO’s European business and president of the parent company.
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 $545m and increase our revenue to about $8.5bn 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.”
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