LYON, FRANCE - European food retail and supply chain transportation, logistics, and freight forwarding company Norbert Dentressangle has just been purchased by XPO Logistics for €3.24 billion ($3.53 billion).
"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,” Bradley Jacobs, Chairman and Chief executive of XPO Logistics, told Insider Media. "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."
XPO Logistics is currently, according to its website, the second largest freight brokerage firm and the third largest provider of intermodal services in the U.S., with top rankings in last mile logistics for heavy goods, expedited shipments, and technology-enabled supply chain solutions. The company now apparently has its sights on growing its global base. According to the Wall Street Journal’s Maria Armental, the combined company would be the world’s second-largest freight brokerage firm by net revenue and have about $8.5 billion in annual revenue.
Currently Norbert Dentressangle is composed of more than 42,350 employees across 662 global locations, giving XPO Logistics access to one of Europe’s largest fleet networks. While the final details are subject to both U.S. and German approval, XPO is set to buy all shares owned by the Dentressangle family, which comprises a 67 percent stake at about $239 a share.
Hervé Montjotin, Chairman and Chief Executive of Norbert Dentressangle, will reportedly continue to serve as Chief Executive of XPO's European business and President of the parent company, according to Insider Media. "By joining XPO, we will become part of an organization 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,” he said, adding that he is proud to lead this growth for both companies with the rest of the current management board.
The head office will reportedly remain in Norbert Dentressangle’s current Lyon base, and XPO has also announced that it will not reduce its number of full-time employees for at least 18 months.
