XPO Logistics has begun raising $3.26bn (£2.1bn) to finance its takeover of Norbert Dentressangle and for other, as yet unspecified acquisitions.
The US firm, which last month indicated that its €3.2bn (£2.3bn) acquisition of the French transport and logistics giant could be just the first in a series of takeovers of European companies, has secured an investment by a group of global institutional investors that will raise $1.26bn; and has also announced the issue of $2bn of corporate bonds.
XPO has stated that it “intends to use the net proceeds… to fund its pending purchase of Norbert Dentressangle and for other unspecified acquisitions”.
Last month, XPO chairman Bradley Jacobs said the acquisition of Norbert Dentressangle gave the US group “a whole new platform…. to do more acquisitions”, adding that XPO had “already examined ND’s top acquisition targets”.
XPO’s move to raise money for further acquisitions lends further support to suggestions by KPMG earlier this year that merger and acquisitions activity in the global transport sector was set to rise this year. Something echoed in Barclays' recent UK Logistics Confidence Index.
