CEVA is seeking to acquire UK logistics services provider Wincanton in a deal which the Wincanton board is backing. The deal which would take Wincanton into private hands values the entire issued and to be issued share capital of the UK business at c.£566.9m and values Wincanton at around £764.9m on an enterprise value basis.
Wincanton said that it continued to trade in line with market expectations during Q3 and is on track to deliver around £50.5m pre-tax profit for the year ended 31 March 2024.
CEVA views the deal as an attractive growth opportunity and says that it represents a unique opportunity to expand its offering in the UK and to acquire complementary grocery and consumer expertise.
Wincanton’s approximately 20,300-strong team operates from more than 170 sites across the country, operating over 8000 vehicles.
Sir Martin Read CBE, chairman of Wincanton, said: “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.”
Mathieu Friedberg, chief executive of CEVA, said: “Wincanton’s commitment to their people drives their success in the UK contract logistics market. At CEVA, we accomplish our mission through the diverse, talented people we have working in the UK and around the world. The proven track record of both CEVA and Wincanton are largely thanks to our respective employees. In addition to the innovative logistics solutions that we could develop and offer together, we would be optimally positioned to answer even more supply chain challenges for our combined set of UK customers”.
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