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Wincanton recommends acceptance of GXO offer

[ March 4, 2024   //   ]

Wincanton Directors have recommended an offer to buy the company by GXO for about £762 million, or £6.05 per share, 26% higher than that made by CMA CGM subsidiary Ceva Logistics in February.

West Country-based Wincanton operates more than 170 sites across the country with a 20,300-strong team – including 5,000 drivers – and a fleet of 8,500 vehicles, mainly involved in domestic UK and Irish distribution.

US-owned GXO, which already owns Clipper Logistics in the UK and some years ago acquired TDG as well as France’s Norbert Dentressangle, said it believed that merging with Wincanton would expanding its presence in a key market, and would allow it “to capitalise on exciting, structural growth opportunities within the UK and Ireland”.

It said it also valued Wincanton’s collaborative relationships with its Aerospace, Public and Industrial, Grocery and Consumer, General Merchandise, and e-fulfilment customers.

Earlier in February, CMA CGM ‘s CEVA Logistics arm had reached agreement to take over the old-established operator for £4.80 per share, a price which valued Wincanton at about £566.9 million.

Wincanton chairman Sir Martin Read said, in recommending this offer to shareholders in January, that the Ceva offer was in the interests of all the company’s stakeholders, adding that the strong performance of the company has not been reflected in the performance of its shares in recent years.

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