Wincanton to go private in £567mn deal

Jan 19, 2024 | News | 0 comments

Wincanton is to be taken private in a £567mn deal, following a host of other UK logistics players off the London market. 

The group leapt by 47 per cent after it announced it had agreed a cash offer from Ceva Logistics, a subsidiary of French shipping giant CMA CGM. The deal values Wincanton at 450p a share, a premium of approximately 52 per cent to the pre-deal closing price and an 82 per cent premium to its average share price over the past 12 months. The acquisition implies an enterprise value multiple of approximately 6.8 times Wincanton’s underlying Ebitda. 

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“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,” said Wincanton chair Sir Martin Read.

“We therefore believe this offer represents the best opportunity for shareholders to realise the value of their investment with greater certainty.” The deal is so far backed by investors representing just 7 per cent of Wincanton’s shares. Its largest shareholders are a Columbia Threadneedle fund, which holds close to 16 per cent, and an Aberforth Partners trust, with 11 per cent. 

If the deal is voted through by shareholders, the London Stock Exchange will no longer be home to any pure-play logistics companies.

In 2022, GXO (US:GXO) bought retail specialist Clipper for almost £1bn, which represented a 32 per cent premium to its three-month average share price. Meanwhile, HIG Capital has offered £315mn for small-cap courier DX, a 30 per cent premium to its highest closing price between November 2015 and September 2023. Xpediator has also been snapped up by a Baltics private equity fund.

Source: Investors Chronicle

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