American company XPO Logistics has agreed to buy a majority interest in French logistics business Norbert Dentressangle in a deal worth 3.24 billion euros.
Founder Norbert Dentressangle is selling his family's 67 percent stake in the Lyon-based company to XPO Logisitics, while the US company will launch a tender offer for the remaining shares.
The deal XPO is saying will make it one of the top 10 logistic companies in the world, as it will have access to Europe's largest fleet network, as Norbert Dentressangle operates out of 662 locations, including the UK where it counts online retailers Asos.com and Missguided as customers.
Following the deal, 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.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said: “This is a defining moment in the growth of XPO. Our planned acquisition of Norbert Dentressangle will catapult XPO to a top 10 global logistics company.
“It will more than triple our EBITDA to 545 million dollar and increase our revenue to about 8.5 billion dollar (5.5 billion pounds) 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."
Montjotin added: "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: to become a global partner able to effectively support our customers in the management of their supply chains.
“As XPO's platform for growth in Europe, we can continue to pursue this goal on an even larger scale, to the benefit of our customers and employees. I am proud to lead this growth for XPO, together with the current management board."