XPO to Acquire Norbert Dentressangle

 

Dentressangle will sell the 67 percent of his family’s ownership in the company for €217.50 (US$240.58) per share. XPO will then start a tender offer for the remaining stake at the same price.

 

A binding agreement has been received from  Norbert Dentressangle and his family for their entire 67% stake in the company and XPO will launch an all-cash tender offer for the remaining shares on antitrust clearances in the US and Germany.

 

The combination of XPO Logistics Inc and Norbert Dentressangle will create a top 10 worldwide logistics company with the complementary offerings and geographies enabling widespread cross-selling to an established base of multinational companies. The transaction equates to an aggregate consideration of 9.1x consensus 2015 EBITDA and is not conditional on financing.

 

Hervé Montjotin, chairman of the executive board and chief executive officer of Norbert Dentressangle, will serve as chief executive officer of XPO’s European business and president of the parent company. XPO intends to maintain the European headquarters of Norbert Dentressangle in Lyon. 

 

The company added that it “also intends to maintain the headquarters and centre of decision of Norbert Dentressangle’s European logistics business in France, as well as Norbert Dentressangle’s transportation business in the department of Drôme”.

 

Norbert Dentressangle operates three businesses: goods transport (46% of 2014 sales); logistics (50%) and freight forwarding (4%). It employs 42,500 people and operates across Europe, the US and Asia.

 

Bradley Jacobs, chairman and chief executive officer of XPO Logistics, commented: “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 US$545 million and increase our revenue to about US$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.”