Ceva Logistics to buy Wincanton in major consolidation move
19 January 2024
Wincanton will switch from stock market to private ownership with its board accepting a cash offer from Ceva Logistics that values the company at c.£764.9 million.
THE BOARD will unanimously recommend this offer to Wincanton shareholders. Wincanton has reached agreement with CEVA Logistics Rose Limited, a wholly-owned subsidiary of CEVA Logistics S.A., itself a subsidiary of CMA CGM S.A, on the terms of a recommended cash offer for the entire issued and to be issued share capital of Wincanton.
The acquisition values the entire issued and to be issued share capital of Wincanton at c.£566.9m and values Wincanton at c.£764.9m on an enterprise value basis. This represents a premium of approximately 52% to the closing share price on 18 January and 82% to the volume-weighted average share price over the last twelve months.
Wincanton chairman Sir Martin Read CBE, 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."
Wincanton chief executive officer James Wroath, added: “I am incredibly proud of the progress we have made at Wincanton over the last four years, thanks to our great people and customers. We have strengthened our business and ensured that we are at the forefront of logistics innovation. Our work in automation and technology has been industry-leading and has allowed us to take advantage of trends towards outsourcing and eCommerce while continuing to improve service for our long-term customers.
“This offer will enable Wincanton to continue and accelerate the progress that has been made, providing an excellent partner with the balance sheet strength that will allow the pursuit of both existing and new growth opportunities. CMA CGM's strong track record of investing in its people and its commitment to its customers means that we are confident this offer will deliver benefits for all of our stakeholders.”
Chris Clowes, senior consultant and lead for European projects at global supply chain and logistics consultancy, SCALA, commented: “While this deal is major news for the sector, it follows a growing trend we’ve seen over the last two decades, in which large British 3PLs are slowly being acquired. Already, major players like Clipper, TDG, and now Wincanton have been bought by larger companies. But with market evolution comes opportunity. As global providers inevitably set their sights on larger customers, medium British 3PLs can offer tailored, bespoke services to domestic customers and catalyse growth. What’s more, we’re seeing an increasing number of new entrants that offer specific solutions for start-ups and SMEs come to market, who stand to benefit from the newly available space to target prospects.
“Despite the opportunities in the 3PL market, though, we’re still anticipating a turbulent 2024 for logistics and supply chain operations. We’re already seeing British hauliers go out of business at a rate of around one per week, due to declines in volume and continued increases in cost. And looking beyond the UK, wider European and global operations face another challenging year as leaders navigate changing circumstances.”