XPO Logistics gains 67% stake in Norbert Dentressangle
09 / 06 / 2015
Fast-growing XPO Logistics has completed the purchase of a 67% shareholding in one of Europe’s most well-known logistics firms, Norbert Dentressangle, pushing it into the top-ten list of global logistics players.
The deal, first announced in April, sees XPO acquire its majority stake in the company through the purchase of the Dentressangle family’s 67% shareholding at a price of €217.5 ($245.5) per share.
XPO Logistics Europe chief executive and president and Norbert Dentressangle management board chairman Hervé Montjotin said: “We are very pleased to confirm the closing of the transaction announced in April.
“Thanks to the speedy completion of this acquisition, we can begin our integration as part of XPO Logistics without delay and fully commit to an ambitious business development plan, supported by a broader service offering and an expanded capacity for innovation.”
In accordance with French law, XPO will now launch an offer to acquire the remaining outstanding shares at a price of €217.5 per share.
The total 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.
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 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.
But the Norbert Dentressangle brand will not be kept.
XPO has been rapidly expanding over the last few years and in February announced the acquisition of UX Specialized Logistics.
While it has a strong presence in North America, the deal will greatly expand its footprint in Europe.
Norbert Dentressangle last year reported revenue growth of 15.8% to €4.7bn, largely thanks to its expansion into the US through the $750m purchase of contract logistics firm Jacobson.