A bidding war is heating up for the ownership of Wincanton after US-based GXO Logistics revealed a £762million bid for the British logistics firm on Thursday.
The 605p per share offer is around 26 per cent higher than the 480p ‘increased and final’ offer from CEVA Logistics, a subsidiary of French shipping giant CMA CGM, which was backed by the Wincanton board on Monday.
GXO already has the binding support of Wincanton shareholders holding around 34 per cent of the company’s equity, but that support will no longer be binding if another offer of more than 695p comes to the table.
Wincanton shares up are more than 90% this year as takeover bids continue to drive the price higher
Wincanton shares soared by almost 20 per cent to 607p by midday on Thursday, bringing 2024’s gains to more than 90 per cent as bidding action continues to drive the price higher.
Founded nearly a century ago, Wincanton operates around 8,500 vehicles delivering a range of consumer goods across the UK, including food, fuel, industrial equipment, and building materials.
Its customers include some of Britain’s most prominent retailers, such as Primark, Ikea, Asda and Sainsbury’s, as well as manufacturers like BAE Systems, British Sugar and Tata Chemicals.
Suitor GXO operates in almost 30 countries from about 970 warehouse locations and has a large exposure to the US aerospace and defence sectors.
GXO told investors the deal would bolster its position as a ‘global pure-play contract logistics leader by expanding its presence in a key market, enhancing its capabilities to better serve customers and drive long-term shareholder value creation’.
It added: ‘The combination has compelling strategic and financial logic and represents an opportunity for GXO to capitalise on exciting, structural growth opportunities within the UK and Ireland.’
Analysts at Peel Hunt raised their Wincanton target share price to 500p, and said ‘it is no surprise that Wincanton has been bid for’ as the last independent, UK-listed, logistics operator with undervalued growth prospects
Malcolm Wilson, chief executive officer of GXO said: ‘Wincanton is a world class business, and we have long been impressed by their high-quality people and diverse customer relationships across key industries.
‘The combination of GXO’s technological capabilities and global reach with Wincanton’s proven expertise in the UK and Ireland markets will enhance our offering for the benefit of both companies’ current and future customers.
‘Our superior offer reflects our conviction in the value of this business and the opportunities the combined company will realise.’
