US company XPO Logistics has agreed to buy French transport company Norbert Dentressangle for €3.24 billion, including debt, in a deal it said will make it one of the top 10 logistics companies in the world.
The deal will give XPO access to Europe's largest fleet network and push the company's annual revenue to about $8.5 billion, XPO said.
The acquisition will be the biggest in the company's history, according to Thomson Reuters data, and its second this year after its purchase of UX Specialized Logistics.
“This was a transformative acquisition for us,” said XPO Chief Executive Officer, Brad Jacobs. “It really puts us on the map in terms of critical mass, but it’s just the beginning.”
XPO jumped as much as 13 per cent in afterhours trading and was trading at US$47.71 (€43.47). The shares closed regular trading at US$42.45 (€38.68), giving the company a market value of about US$3.4 billion (€3.09 billion).
XPO said the total transaction value would include €1.08 billion of net debt.
Founder Norbert Dentressangle will sell his family's 67 per cent stake in the Lyon-based company for €217.50 per share, a 34 per cent premium to the stock's close of €159.10 on Monday. XPO will launch a tender offer for the remaining shares at the same price.
XPO financial advisor Morgan Stanley has provided a financing commitment of up to $2.6 billion, XPO said.
Following the deal, Norbert Dentressangle Chief Executive Hervé Montjotin, will be Chief Executive of XPO's European business and President of the parent company.