Wincanton is buying Product Support Holdings Ltd (PSHL), which offers logistics services to defence and aerospace markets, in a deal worth up to £30m.
This is Wincanton’s second bid of the month. Only a couple of weeks ago it Wincanton announced that it wanted to buy TDG. It has been given until 20th June by the City Takeover Panel to decide whether it will go forward with an offer.
PSHL operates from 25 sites, mostly in the UK, and employs 422 people. Customers include AgustaWestland, BAE Systems and Honeywell.
Its core expertise lies in the management of time-critical spare parts and components. Its services include specialised storage, protective packaging design and manufacture, security screening and distribution. Wincanton believes there is scope to develop these areas of expertise into new sectors. PSHL has already had initial success with new business wins in the petroleum industry.
Wincanton is paying £27m initially with up to a further £3m payable subject to the financial performance of PSHL in the period to 31 March 2009. In the year to 31 March 2008, PSHL reported sales of £19.4m, and EBITDA of £3.6m.
This acquisition is the latest in a series of in-fill acquisitions designed to boost Wincanton’s profitability, and broaden its business base.
Graeme McFaull, Wincanton’s chief executive, said: “PSHL’s market-leading expertise, in new industries for Wincanton, will provide a further exciting growth opportunity.”