Clipper sails to £500m target price

RUMOURS abound that one of the bidders eyeing Clipper Logistics is weighing a £5.50-a-share offer, valuing the online fulfilment business at more than £500million.

Last week, it was reported that private equity firms Cinven and CVC Capital Partners had been evaluating Clipper Logistics with a view to making an offer for the Leeds-based company which started in 1992 with just three people and a driver. Now it has 8,000 employees at 43 distribution centres with a fleet of more than 470 vehicles.

The interest comes after the chairman and founder, Steve Parkin, teamed up with Sun Capital to take the company private earlier this year.

Talks with Sun Capital broke down and the buy-out shop backed out of a deal.

On Friday, Clipper Logistics shares fell 7.8p to £4.72.