01 March 2024 , 10:06
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Wincanton, the logistics giant, has agreed to the latest takeover offer from a US suitor following a battle to buy the firm.
US based GXO Logistics revealed it had made a 605p-a-share cash offer for Wiltshire-headquartered Wincanton, valuing it at around £762 million. Wincanton’s directors had previously agreed to a £605 bid by Ceva Logistics, part of French shipping specialist CMA CGM. Wincanton said it would withdraw its backing from the deal and support the larger bid from GXO. The offer represents a 104% premium on the price of shares in January.
Sir Martin Read, chairman at Wincanton, said: "We have long been clear that Wincanton is a great business with a compelling strategy, strong customer relationships and excellent people. Under the current management team, we have made positive progress and ensured that Wincanton is at the forefront of logistics innovation."
"The board of Wincanton is pleased that GXO recognises the very significant value inherent in this business and intends to recommend the offer to shareholders for their consideration."
GXO specialises in using automation technology to help its customers manage their supply chains and bought Leeds-based rival Clipper in a £965 million deal in 2022. Wincanton, which employs over 20,000 staff and manages parts of its customers' supply chains, works with big brands like Ikea, Primark, Waitrose, and Wickes.
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GXO announced on Thursday that if its "superior" bid is successful, there might be some impact on support staff due to plans to revamp administrative functions. However, this would likely affect only 0.2% of the combined workforce of 150,000, or around 300 jobs.
The company added: "While synergies are expected from combining support functions, GXO expects overall headcount will increase long term as part of ongoing efforts to grow its UK operations." By the third year after the deal, it expects to save around £50 million in "synergies".