Third-party logistics company Wincanton has today [19 January] announced that an agreement has been reached with CEVA Logistics Rose Limited (Bidco), a wholly-owned subsidiary of CEVA Logistics, itself a subsidiary of CMA CGM, on the terms of a recommended cash offer for the acquisition of Wincanton.
The offer is for ‘the entire issued and to be issued share capital of Wincanton’. This has been valued at c. £566.9 million, with Wincanton valued at c. £764.9m on an enterprise value basis.
As stated in the official offer document, this acquisition ‘represents an attractive growth opportunity that is in line with CEVA’s expansion strategy’. It is described as ‘a unique opportunity to expand CEVA’s offering in the UK, and to acquire complementary grocery and consumer expertise’.
CEVA believes that together with Wincanton, it can ‘further develop CEVA’s offering in contract logistics in the UK and Ireland’, ‘build on Wincanton’s proven expertise in partnering with prominent grocers and retailers in the UK to diversify CEVA’s customer base’, ‘bring the support of a well-capitalised and entrepreneurial group […] in order to support future growth as well as future innovation development’ and ‘deliver cost synergies, sharing best practices and making use of key talents from both sides’.
Sir Martin Read CBE, chairman of Wincanton, commented: “This offer for Wincanton from CMA CGM is testament to the strength of the business we have built, our strategy, our strong customer relationships and our excellent people.
“CMA CGM is a highly-experienced operator in the industry, and as Wincanton becomes part of this larger business, it will be able to capitalise on the significant growth opportunities ahead.
“In unanimously recommending this offer to shareholders, the directors believe it is in the interests of all the company’s stakeholders. While we remain confident in the long-term prospects of Wincanton and the wider sector, we recognise that the strong performance of the company has not been reflected in the performance of its shares in recent years.
“We therefore believe this offer represents the best opportunity for shareholders to realise the value of their investment with greater certainty.”
Read more: Wincanton publishes 2023 financial results [May 2023]
James Wroath, Wincanton’s CEO, added: “I am incredibly proud of the progress we have made at Wincanton over the last four years, thanks to our great people and customers. We have strengthened our business and ensured that we are at the forefront of logistics innovation.
“Our work in automation and technology has been industry-leading and has allowed us to take advantage of trends towards outsourcing and e-commerce while continuing to improve service for our long-term customers.
“This offer will enable Wincanton to continue and accelerate the progress that has been made, providing an excellent partner with the balance sheet strength that will allow the pursuit of both existing and new growth opportunities.
“CMA CGM’s strong track record of investing in its people and its commitment to its customers means that we are confident this offer will deliver benefits for all of our stakeholders.”
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