XPO Logistics has acquired logistics firm Norbert Dentressangle in a deal worth 3.2 billion euros ($3.5 billion), after the latter announced its first quarter revenue had increased by 20.7 per cent to 1.3 billion euros.
The deal, which will close in the second quarter of this year, will give XPO access to European, Asian trade lanes. XPO says it was a good time to invest because, of the strength of the US dollar, expectations the eurozone economy would improve and a European transportation and logistics industry, which it describes as, “fragmented”.
The Norbert management team will retain their jobs while the company will be rebranded under XPO Logistics. XPO Logistics chairman and chief executive officer (CEO), Bradley Jacobs, says: “It will more than triple our EBITDA [earnings before interest, tax, depreciation and amortisation] to $545 million and increase our revenue to about $8.5 billion upon completion of the tender offer.”
In the first quarter of 2015, Norbert increased its revenue by 20.7 per cent to 1.3 billion euros. Revenue in France was 429 million euros, up 1.7 per cent. The UK saw the largest increase of 13.6 per cent to 353 million euros in the first quarter. Norbert’s air and sea division revenue increased by 4.7 per cent to 50 million euros.
Commenting on the first quarter results, Norbert Dentressangle CEO, Herve Montjotin says: “Sales figures for the first quarter of 2015 show that the new international scale of Norbert Dentressangle is driving the growth momentum.” Norbert has launched a time critical service, based at Heathrow Airport. The service is available 24 hours a day, 365 days a year, providing real-time tracking, specially trained staff, a dedicated point of contact and will organise customs clearance, if needed. It says shipments can be picked up within 60 minutes of booking confirmation.
Norbert’s time critical expert, Stacy Rouillon, says: “At some point, almost all supply chains rely on time critical services – whether it be to avoid a costly production line stoppage or in the life sciences sector.”
In April 2015, Norbert appointed Loic Gay as managing director of the air and sea division. At the time, Montjotin said: “Loic Gay is tasked with overseeing the next stage of development of our freight forwarding business.”