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Wincanton set to join French empire – updated

[ January 19, 2024   //   ]

CEVA Logistics, a subsidiary of CMA CGM, has reached agreement to take over one of the oldest-established companies in UK and Irish logistics, Wincanton.

Wincanton, headquartered in the west of England and named after the Somerset village where it was first based almost 100 years ago, 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. Its origins were in milk haulage but today the company is active in all sectors of the UK supply chain.

The sale values Wincanton at about £566.9 million. The offers has been unanimously recommended to shareholders but is subject to conditions.

French-based CMA CGM said: “The intended acquisition of Wincanton represents an attractive growth opportunity that is in line with CEVA Logistics’s expansion strategy in this key region.”

Other recent CMA CGM acquisitions include automotive specialist GEFCO and it is poised to complete the takeover for French firm Bolloré Logistics

CEVA Logistics generates approximately US$15 billion of annual revenue of which $0.95bn is in the UK currently.

Ceva said the Wincanton purchase would further develop its presence in contract logistics in the UK and Ireland, with Wincanton acting as its key development and growth platform in the country. It would also build on Wincanton’s proven expertise in partnering with prominent grocers and retailers in the UK to diversify CEVA Logistics’ customer base. It would bring the support of a well-capitalized and entrepreneurial group, with the capability to offer end-to-end logistics solutions on a worldwide basis to both SMEs and major blue-chip clients.

Chairman and chief executive of CMA CGM Rodolphe Saadé, declared: “As a leading and trusted supply chain partner for many well-known British and Irish brands, Wincanton perfectly aligns with the CMA CGM Group’s ambition to further expand its presence in this strategic region. 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 Logistics 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 chairman Sir Martin Read, added: “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.”

Chris Clowes, senior consultant and lead for European projects at global supply chain and logistics consultancy, Scala said: “Deals like this don’t happen every day.”

He added: “It remains to be seen exactly what the impact of the acquisition will be but mergers and acquisitions can be an effective route to growth and successful integration post-acquisition could see all parties reap the benefits. For example, this deal represents a significant opportunity for CMA CGM’s CEVA Logistics unit to expand its UK footing. Meanwhile, both businesses could cut costs by combining warehouse and transport networks, while expanding their respective service offerings.”

He said the bid follows a growing trend we’ve seen over the last two decades, with large British 3PLs being acquired including major players like Clipper and TDG.

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