Ceva Logistics, part of French shipping group CMA CGM, wants to buy British logistics firm Wincanton in an all-cash deal worth around £566.9m ($719m).
The Saade family-controlled company is offering 450 pence per share — a hefty premium of more than 50% on the trading price of Wincanton stock over the past year.
Ceva Logistics believes the combination will develop its presence in contract logistics in the UK and Ireland.
It says it will build on Wincanton’s partnerships with grocers and retailers in the UK.
Wincanton is listed on the London Stock Exchange and operates through a network with 5,000 drivers and 8,500 trucks/trailers.
The companies said the deal gives Wincanton the support of a well-capitalised and entrepreneurial group.
It would provide the capability to offer end-to-end logistics solutions on a worldwide basis and support future organic and inorganic growth, as well as innovation development.
Board recommend
Wincanton said its board intends to unanimously recommend that shareholders vote in favour of the deal.
“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,” said Wincanton chairman Sir Martin Read.
“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."
New opportunities
Rodolphe Saade, chief executive of CMA CGM, said bringing together the two entities would strengthen his group’s footprint in the UK and Ireland, paving the way for new opportunities and more innovative product offerings.
“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,” Saade said.
Wincanton operates from more than 170 sites across the UK. It generated revenue of £1.46bn last year and underlying Ebitda of £121.9m.
The move is the latest in a series of acquisitions by CMA CGM in the logistics sector.
In 2022, key acquisitions included Ingram Micro in the US and European markets, and Gefco to add global finished vehicle logistics solutions. The French group is also poised to complete the acquisition of Bollore Logistics to bolster its footprint in Africa.
