Wincanton agrees to £567m takeover

WILTSHIRE-BASED logistics giant Wincanton has agreed to be taken over by a French-based company in a deal worth around £567m.

The London-listed business announced yesterday it had agreed to the terms of the acquisition, which saw it valued at £764.9m.

Wincanton, which is based in Chippenham, is being acquired by Bidco – a newly established company formed by a subsidiary of Ceva Logistics for the purposes of the acquisition.

Bidco’s offer at the acquisition price of 450 pence per share followed the Wincanton board having received and rejected several “unsolicited proposals” from CMA CGM over a period of a few weeks.

Ceva is part of the CMA CGM Group, with CMA CGM being a global player in sea, land, air and logistics solutions, serving more than 420 ports around the world across five continents, with a fleet of around 620 vessels.

Wincanton’s board of directors said yesterday it now believes the acquisition price is “at a level” it can recommend to shareholders.

It also said the deal represented a “valuable opportunity” which would provide a “positive outcome” for all its stakeholders, including employees, pension-right holders and customers, as well as Wincanton shareholders.

James Wroath, chief executive officer of Wincanton, said: “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.”

Rodolphe Saadé, chairman of CMA CGM, said: “Wincanton’s renowned expertise in designing supply chain solutions for customers in the retail, grocery, eCommerce, construction, infrastructure, energy and defence sectors would enable CEVA to further diversify its contract logistics customer base.

“Bringing together the two entities would strengthen the CMA CGM Group’s footprint in the United Kingdom and Ireland, while also paving the way for new opportunities and more innovative product offerings.

“On behalf of our 155,000 staff members, I look forward to welcoming Wincanton’s talented people within our group.”

Wincanton’s directors were advised by HSBC on the financial terms of the acquisition and the bank is providing independent financial advice to the business.

On behalf of our 155,000 staff members, I look forward to welcoming Wincanton’s talented people within our group RODOLPHE SAADé