Acquisition of Norbert Dentressangle by XPO Logistics - CILT(UK)
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Acquisition of Norbert Dentressangle by XPO Logistics

30 April 2015/Categories: CILT, Industry News, Aviation, Freight Forwarding, Logistics & Supply Chain, Ports, Maritime & Waterways


XPO Logistics, Inc. and Norbert Dentressangle SA today announced that they have entered into a definitive agreement for XPO Logistics to acquire a majority interest in Norbert Dentressangle and launch a tender offer for the remaining shares. 

Norbert Dentressangle is a leading global provider of contract logistics, including e-commerce fulfillment; freight brokerage and transportation; and global forwarding services. Headquartered in Lyon, France, Norbert Dentressangle has 662 locations and approximately 42,350 employees, and serves a blue chip customer base that includes some of the world’s largest companies. 

Norbert Dentressangle’s transportation and logistics services complement XPO’s offerings in contract logistics, freight brokerage and global forwarding. The company had €5.1 billion ($5.5 billion USD) in pro-forma trailing 12-month revenue for the year-ended December 31, 2014.

  • XPO to become a top ten worldwide logistics company and leading European outsourced e-fulfillment provider 
  • The acquisition will more than triple XPO’s EBITDA run rate to approximately $545 million, and increase its revenue to approximately $8.5 billion, nearly achieving the company’s 2017 targets two years ahead of plan 
  • Complementary service offerings and geographies will enable widespread cross-selling to an established base of multinational companies 
  • The transaction is valued at €3.24 billion and is expected to close in the second quarter of 2015 
  • Norbert Dentressangle’s supervisory board has unanimously approved entry into a tender offer support agreement 

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 ten global logistics company. 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.’

Jacobs continued: ‘In Norbert Dentressangle, we are acquiring a company that has been meticulously built over the last four decades. I am extremely pleased that Norbert Dentressangle’s executive leader, Hervé Montjotin, will serve as chief executive officer of our European business and president of the parent company. I look forward to working closely with Hervé as we execute XPO’s global strategy.’

Highlights of the Proposed Transaction 

  • The market value of the transaction for Norbert Dentressangle shareholders is €2.17 billion, based on 9.9 million fully-diluted outstanding shares. The total transaction value is approximately €3.24 billion, including €1.08 billion of net debt. The board of directors of XPO and the supervisory board of Norbert Dentressangle have unanimously approved the transaction.
  • XPO has entered into a binding agreement to purchase from Mr. Norbert Dentressangle and his family all of their shares in Norbert Dentressangle, representing 67% of the company’s outstanding shares. The agreed price per share is €217.50, excluding €1.80 dividend per share to be paid prior to the close of the transaction. 
  • If the tender results in XPO holding more than 95% of Norbert Dentressangle’s ordinary shares and voting rights, XPO intends to squeeze out minority shareholders and delist the shares.
  • The per-share cash price represents a premium of approximately 34 percent compared to the closing price of Norbert Dentressangle ordinary shares on April 27, 2015. 
  • The transaction is not conditioned on financing. Morgan Stanley has provided a financing commitment for up to $2.6 billion. XPO has over $1 billion in cash and an undrawn $415 million ABL revolver.
  • 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 not to reduce the total number of full-time employees in France for a period of at least 18 months from closing. Additionally, XPO intends to maintain the European headquarters of Norbert Dentressangle in Lyon, and 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. 

Hervé Montjotin, chairman of the executive board and chief executive officer of Norbert Dentressangle, said: ‘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.’

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