CEVA Logistics to buy Wincanton for $720mn

Wincanton’s 20,300-strong team generated revenue of £1.5bn with an underlying EBITDA of £121.9mn for FY23

CEVA Logistics to buy Wincanton for $720mn
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CEVA Logistics, a subsidiary of CMA CGM, has reached an agreement with the board of directors of Wincanton to offer 450 pence per share, which values Wincanton at approximately £566.9 million ($720 million) on a fully diluted basis.

The intended acquisition of Wincanton represents a growth opportunity that is in line with CEVA Logistics's expansion strategy in this key region, says an official release from CEVA.

Wincanton is a leading supply chain partner for British and Irish businesses, and takes care of customers’ supply chain needs across four sectors: efulfilment; grocery & consumer; general merchandise, and Public & Industrial, the release added.

Wincanton’s 20,300-strong team operates from more than 170 sites, and generated revenue of £1.5 billion with an underlying EBITDA of £121.9 million for FY23.

The combination between Wincanton and CEVA Logistics will:

*Further develop CEVA Logistics' presence in contract logistics in the U.K. and Ireland with Wincanton acting as its key development and growth platform in the country;

*Reinforce and develop CEVA Logistics' capabilities in the U.K. and Ireland as Wincanton is operating a network with 5,000 drivers and 8,500 trucks/trailers; and

*Build on Wincanton’s proven expertise in partnering with prominent grocers and retailers in the U.K. to diversify CEVA Logistics’ customer base.

"I am very excited about the prospect of working with Wincanton's experienced leadership team and the power of the combination with our logistics arm, CEVA Logistics," says Rodolphe Saadé, Chairman & CEO, CMA CGM. "As a leading and trusted supply chain partner for many well-known British and Irish brands, Wincanton perfectly aligns with the CMA CGM Group's ambition to further expand its presence in this strategic region.

"Wincanton's renowned expertise in designing supply chain solutions for customers in the retail, grocery, e-commerce, construction, infrastructure, energy and defence sectors would enable CEVA Logistics to further diversify its contract logistics customer base.

"Bringing together the two entities would strengthen the CMA CGM Group's footprint in the United Kingdom and Ireland while also paving the way for new opportunities and more innovative product offerings. On behalf of our 155,000 staff members, I look forward to welcoming Wincanton's talented people within our Group."

Mathieu Friedberg, CEO, CEVA Logistics adds: "Wincanton's commitment to their people drives their success in the U.K. contract logistics market. At CEVA Logistics, we accomplish our mission through the diverse, talented people we have working in the U.K. and around the world. The proven track record of both CEVA Logistics and Wincanton are largely thanks to our respective employees. In addition to the innovative logistics solutions that we could develop and offer together, we would be optimally positioned to answer even more supply chain challenges for our combined set of UK customers."

James Wroath, CEO, Wincanton says: "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."

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