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DUBAI, United Arab Emirates – One of the world’s largest port operators, DP World, announced on July 1 that it had acquired US logistics company Syncreon Holdings in a $ 1.2 billion deal, the latest investment as the shipping company strives to expand further.
Dubai-based DP World has said its purchase of Syncreon is expected to be finalized later this year. The company plans to finance the acquisition from existing resources so as not to go into further debt.
The move comes after the port operator saw a 29% drop in profits in 2020 as the coronavirus pandemic froze global supply chains and disrupted trade flows. The company was delisted from the stock exchange and returned to full state ownership last year.
Syncreon operates supply chains for the automotive and tech industries, managing warehouses and distribution centers for packaging, shipping and delivery in 19 countries.
DP World now operates in 61 countries along some of the world’s busiest shipping routes, from Brisbane, Australia, in the east, to Prince Rupert, Canada, in the west. The company has aggressively expanded its reach into the Horn of Africa, positioning the UAE as one of the main foreign players to cram into the strategic Red Sea.
Syncreon Holdings is ranked 36th on the Transport Topics Top 50 list of the largest logistics companies in North America.
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