XPO Logistics to Buy Norbert in $3.53 Billion European Expansion
2015-04-28 20:02:17.692 GMT
By Leslie Picker
(Bloomberg) -- XPO Logistics Inc. agreed to acquire
European counterpart Norbert Dentressangle SA in a deal valued
at $3.53 billion including debt, as it seeks to become one of
the largest providers of supply-chain services in the world.
Founder Norbert Dentressangle will sell his family’s 67
percent ownership in the Lyon, France-based company for 217.50
euros per share, according to XPO. XPO, based in Greenwich,
Connecticut, will then start a tender offer for the remaining
stake at the same price. That reflects a 37 percent premium to
Norbert’s closing price Tuesday in Paris of 159.10 euros a
share, and a value of more than $2 billion in cash.
This is the largest deal ever for XPO Chief Executive
Officer Brad Jacobs, who’s made a career building companies,
such as United Rentals Inc. and United Waste Systems Inc.
through hundreds of acquisitions. He’s already started looking
at other targets in the region to help shape XPO into a global
transport-services juggernaut.
“This was a transformative acquisition for us,” said
Jacobs, 58, in an interview. “It really puts us on the map in
terms of critical mass, but it’s just the beginning.”
Europe’s economic recovery has encouraged several U.S.-
based companies to strike cross-border deals. U.S. suitors
announced $201.6 billion of acquisitions of Western European
companies in the past 12 months, more than twice the value of a
year earlier, according to data compiled by Bloomberg. Earlier
in April, FedEx Corp. agreed to buy Dutch parcel-delivery
company TNT Express NV for $4.8 billion.
Euro Rebound
For XPO, the strong dollar relative to the euro made the
acquisition much less expensive than it would have been in
January, Jacobs said.
“Europe has had a tough last few years,” Jacobs said.
“My sense of the situation is that you’re seeing the beginnings
of a rebound in the Euro area.”
The Norbert acquisition will increase XPO’s pro forma
revenue to about $8.5 billion, and earnings before interest,
taxes, depreciation and amortization to $545 million, the
company said.
Morgan Stanley is providing $2.6 billion in financing, and
XPO will use $1 billion in cash. Morgan Stanley is also serving
as a financial adviser to XPO, while Rothschild and JPMorgan
Chase & Co. are advising Norbert.
For Related News and Information:
XPO’s Jacobs Pulls Off 500 Deals Bypassing Wall Street Bankers
FedEx Aided by Strong Dollar in ‘Perfect-Timing’ Bid for TNT
XPO Logistics Agrees to Buy 3PD for $365 Million, CEO Says
Top transportation stories: TOP TRN <GO>
Top deal news: DTOP <GO>
Bloomberg Industries truck analysis: BI TRCK <GO>
Bloomberg Industries truckmaker analysis: BI TRUC <GO>
M&A Database: MA <GO>
--With assistance from Jeffrey McCracken in New York.
To contact the reporter on this story:
Leslie Picker in New York at +1-212-617-2797 or
lpicker2@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman
2015-04-28 20:02:17.692 GMT
By Leslie Picker
(Bloomberg) -- XPO Logistics Inc. agreed to acquire
European counterpart Norbert Dentressangle SA in a deal valued
at $3.53 billion including debt, as it seeks to become one of
the largest providers of supply-chain services in the world.
Founder Norbert Dentressangle will sell his family’s 67
percent ownership in the Lyon, France-based company for 217.50
euros per share, according to XPO. XPO, based in Greenwich,
Connecticut, will then start a tender offer for the remaining
stake at the same price. That reflects a 37 percent premium to
Norbert’s closing price Tuesday in Paris of 159.10 euros a
share, and a value of more than $2 billion in cash.
This is the largest deal ever for XPO Chief Executive
Officer Brad Jacobs, who’s made a career building companies,
such as United Rentals Inc. and United Waste Systems Inc.
through hundreds of acquisitions. He’s already started looking
at other targets in the region to help shape XPO into a global
transport-services juggernaut.
“This was a transformative acquisition for us,” said
Jacobs, 58, in an interview. “It really puts us on the map in
terms of critical mass, but it’s just the beginning.”
Europe’s economic recovery has encouraged several U.S.-
based companies to strike cross-border deals. U.S. suitors
announced $201.6 billion of acquisitions of Western European
companies in the past 12 months, more than twice the value of a
year earlier, according to data compiled by Bloomberg. Earlier
in April, FedEx Corp. agreed to buy Dutch parcel-delivery
company TNT Express NV for $4.8 billion.
Euro Rebound
For XPO, the strong dollar relative to the euro made the
acquisition much less expensive than it would have been in
January, Jacobs said.
“Europe has had a tough last few years,” Jacobs said.
“My sense of the situation is that you’re seeing the beginnings
of a rebound in the Euro area.”
The Norbert acquisition will increase XPO’s pro forma
revenue to about $8.5 billion, and earnings before interest,
taxes, depreciation and amortization to $545 million, the
company said.
Morgan Stanley is providing $2.6 billion in financing, and
XPO will use $1 billion in cash. Morgan Stanley is also serving
as a financial adviser to XPO, while Rothschild and JPMorgan
Chase & Co. are advising Norbert.
For Related News and Information:
XPO’s Jacobs Pulls Off 500 Deals Bypassing Wall Street Bankers
FedEx Aided by Strong Dollar in ‘Perfect-Timing’ Bid for TNT
XPO Logistics Agrees to Buy 3PD for $365 Million, CEO Says
Top transportation stories: TOP TRN <GO>
Top deal news: DTOP <GO>
Bloomberg Industries truck analysis: BI TRCK <GO>
Bloomberg Industries truckmaker analysis: BI TRUC <GO>
M&A Database: MA <GO>
--With assistance from Jeffrey McCracken in New York.
To contact the reporter on this story:
Leslie Picker in New York at +1-212-617-2797 or
lpicker2@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman