Syncreon, a closely held logistics company that ships goods for customers including General Motors Co. and Dell Inc. (DELL:US), is up for sale, according to people familiar with the process.
The company, which has its operational headquarters in Auburn Hills, Michigan, may be valued at as much as $1 billion, said three of the people, who asked not to be identified because the talks are private. The owners, Irish businessmen Michael and Brian Enright and New York-based buyout firm GenNx360 Capital Partners, are working with JPMorgan Chase & Co. to find a buyer, said two of the people. They’re also working with Morgan Stanley, one of the people said.
Syncreon was formed in 2007 after the combination of Walsh Western International, which served technology companies, and TDS Logistics Inc., which focuses on the automotive sector, according to the company’s website. The company has activities in 25 countries and about 12,000 employees, according to a November press release.
The effort to sell Syncreon comes amid a pick-up in car sales and economic growth in the U.S. Light-vehicle sales are on track for their best year since 2007, according to analysts surveyed by Bloomberg. Consumer confidence unexpectedly jumped in April, showing the recovery in residential real estate is buttressing the U.S. economy.
Private-equity bidders are the likeliest buyers, though logistics firms including Deutsche Post AG (DPW) may also take a look, three of the people said.
Syncreon Holdings Ltd.’s sales rose to $912 million in 2011 from $689 million from the previous year, according to the company’s most recent figures filed with the Irish companies office. Operating profit fell to $32.4 million from $40 million on higher salaries and wages.
A representative for Syncreon declined to comment. Representatives for the company’s owners didn’t respond to requests for comment on the proposed sale.
Last year’s biggest logistics deal was rejected by European Union regulators. United Parcel Service Inc. (UPS:US) in 2012 offered 5.16 billion euros ($6.8 billion) to buy Dutch rival TNT Express NV (TNTE) to expand in Europe. UPS appealed the ruling this April.
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