XPO Logistics buyout of Norbert Dentressangle to change face of sector

CONNECTICUT's XPO Logistics is taking a majority stake in Lyons-based Norbert Dentressangle in a move that promises to change the face and standings of the sector worldwide.

The total transaction is valued at around EUR3.24 billion (US$3.5 billion), including EUR1.08 billion of net debt, with the boards of both unanimously approving the transaction.

The deal is expected in increase XPO's revenue 300 per cent and put it in the top 10 of global contract logistics companies, giving it a leading position in Europe, including a big chunk of the European outsourced e-fulfilment market.

Norbert Dentressangle achieved with 2014 revenues of EUR5.1 billion across multiple freight and transport activities including contract logistics; road transport and distribution; freight brokerage and transport; global forwarding services; and e-commerce fulfilment. XPO reported total revenue of US$2.4 billion in 2014, boosted last year by the strategic acquisitions of Pacer International, ACL, and New Breed Logistics, which helped drive a 235 per cent revenue increase from 2013, reported Lloyd's List.

Said XPO chairman and CEO Bradley Jacobs: "This is a defining moment in the growth of XPO. 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."

Said Norbert Dentressangle chairman and CEO Herve Montjotin: "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."

John Manners-Bell, CEO of the UK's Transport Intelligence (Ti) said: "XPO has been behind a wave of acquisition activity in the US and there were fears it was running out of steam. Norbert Dentressangle was not the finished article - it has been growing its freight forwarding business and is weak in Asia - so we can expect its new owners to continue with in-fill acquisitions to address these whitespots."