XPO launches Norbert Dentressangle takeover bid

Fast-growing XPO Logistics has launched a €3.2bn takeover one of Europe’s largest logistics firms, Norbert Dentressangle, that will push the company into the top ten global logistics players.
The two companies have entered into a definitive agreement that will see XPO acquire the majority of shares in Lyon-based Norbert Dentressangle through the purchase of the Dentressangle family’s 67% shareholding at a price of €217.5 per share. XPO will then launch a tender offer for the remaining shares.
The market value of the transaction for Norbert Dentressangle shareholders is €2.2bn, based on 9.9m fully-diluted outstanding shares.
The total transaction value is approximately €3.2bn, including €1.1bn of net debt.
New York Stock Exchange-listed XPO said the companies offered complementary service offerings and geographies and the purchase will enable widespread cross-selling to an "established base of multinational companies".
The acquisition will more than triple XPO’s earnings before interest, tax, depreciation and ammortisation to approximately $545m and increase its revenue to approximately $8.5bn.
XPO chairman and chief executive Bradley Jacobs 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.”
The transaction is not conditioned on financing, with Morgan Stanley providing a financing commitment for up to $2.6bn, while XPO has over $1bn in cash and an undrawn $415m asset based lending revolving facility.
XPO said it would not reduce the total number of full-time employees in France for a period of at least 18 months from closing. It will also maintain the headquarters in Lyon.
“Norbert Dentressangle offers services that strongly mirror XPO’s portfolio: contract logistics, including e-fulfillment; freight brokerage; an asset-light palletised network; freight management; dedicated and owned truckload; and global freight forwarding,” the US logistics giant said.
“XPO expects to realise substantial, company-wide cross-selling opportunities from the combination.
“For 36 years, Norbert Dentressangle has built a loyal base of blue chip customers that includes multinational companies, many of which are not currently served by XPO.”
XPO has been rapidly expanding over the last few years and in February announced the acquisition of UX Specialized Logistics.
Norbert Dentressangle last year reported revenue growth of 15.8 per cent to €4.7bn, largely thanks to its expansion into the US through the $750m purchase of contract logistics firm Jacobson.
The transaction is subject only to receipt of antitrust clearances in the US and Germany.