CEVA Logistics, a unit of French shipping group CMA CGM, said that it plans to buy British logistics firm Wincanton in an all-cash deal worth nearly £600 million (€699 million).
The 450 pence-per-share offer represents a premium of 52% to the Wincanton stock's closing price of 297 pence on Thursday, according to a joint statement from the two companies.
Marseille, France-based CEVA said the acquisition would expand its offering in contract logistics in the UK and Ireland, utilising the British company's expertise in partnering with grocers and retailers.
Shareholder Vote
Wincanton said its board intends to unanimously recommend that its shareholders vote in favour of the deal.
Wincanton is active across a wide range of markets from food and consumer goods to fuel and defence, and operates from more than 170 sites.
The acquisition is being done by CEVA through a newly-formed entity CEVA Logistics UK Rose Ltd.
'The intended acquisition of Wincanton represents an attractive growth opportunity that is in line with CEVA's expansion strategy. It is a unique opportunity to expand CEVA's offering in the UK, and to acquire complementary grocery and consumer expertise,' Wincanton said in a statement.
Third-Quarter Results
Earlier this week, Wincanton published third-quarter results which showed a 1.3% increase in revenue year-on-year, boosted by growth in core activities (+5.0%).
Grocery & Consumer revenue was up 2.9% year-on-year, driven largely by the group's transport partnership with Sainsbury's, while General Merchandise reported revenue growth of 3.7% in the period, the company said.
It added that it expected profit for the full financial year to be 'in line with market expectations', despite a 'challenging' market environment.
Additional reporting by ESM
