Clipper logistics owner GXO makes £762m offer for Wincanton as bidding war heats up

By:

Transport Reporter

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Wincanton is the latest fir set for private hands
Wincanton is the latest firm set for private hands

GXO, the owner of Clipper Logistics, has announced a £764m swoop for Wincanton, one of Britain’s largest logistics companies, as a bidding war for the firm heats up.

The offer values Wincanton shares at 605p each and represents a premium of approximately 104 per cent of the closing price of Wincanton shares on 18 January.

It comes after CMA CGM, the French shipping group, agreed to buy the company last month, eventually increasing its offer to £605m. The board of Wincanton had recommended that deal’s approval.

But Wincanton said on Monday it had been approached by an unnamed third party, which has now been confirmed as GXO.

The acquisition price tabled by GXO is 26 per cent above the final offer price per share offer made by CEVA, a French multinational logistics firm owned by CMA CGM. It is also seven times Wincanton’s annual underlying earnings before interest, taxes, depreciation, and amortization (EBITDA).

In a statement, GXO said:  “The acquisition provides Wincanton shareholders with superior value to the CEVA final offer, as the acquisition price represents an increase of 125 pence per Wincanton share and, in aggregate, approximately £157m in the total offer value on a fully diluted basis, compared with the terms of the CEVA final offer.

“Accordingly, GXO expects that the Wincanton Board will recommend the acquisition in due course.”

The bidding war comes as a string of other UK-listed companies face takeover bids from potential buyers.

Currys said it had rejected a takeover bid of around £700m from Elliot Advisors, the owner of Waterstones, earlier in the month.

And yesterday it emerged Direct Line had rejected a £3.1bn proposal from its Belgian peer.

The car dealership Lookers was struck off the London Stock Exchange in December after it was snapped up by Canadian car seller giant Global Auto Holdings for £500m, following a protracted bidding war between a number of international firms.