Wincanton, the logistics firm that has been the backbone of the British grocery industry for almost a century, is being bought out by the French.
It will also become the latest long-standing, London-listed firm to go private, as firms with an established history on the stock exchange continue to turn their backs on it. Wincanton’s new owner will be the shipping group CEVA, part of the wider CMA CGM Group.
The deal is worth £764.9 million including debt. Investors will get 450p in cash for each share held, valuing Wincanton’s stock at £567 million. The company said today that “the limited liquidity of Wincanton shares presents a challenge for Wincanton shareholders to otherwise monetise their holdings.”
Named after the Somerset town in which it began delivering milk, Wincanton was formed in 1925 by the West Surrey Central Dairy Company. It became Unigate and then rebranded as Uniq. Wincanton was demerged from Uniq in 2001, a year after its parent sold off its dairy business.
It is well known as a delivery partner of John Lewis’s grocery chain Waitrose. But it holds a range of logistic contracts outside the food industry, including on the supply chain at the Hinckley Point C nuclear power station, being built by another French firm, EDF.
Wincanton employs around 20,300 people, including 5,000 drivers. Its 7,400 distinctive blue and white liveried trucks are a common sight on Britain’s motorway network.
The rise in online shopping and the deliveries they require have boosted Wincanton’s revenues to around £1.5 billion. It has nationwide coverage for a two-person delivery service. It takes a range of products directly to customers, from furniture to kitchen appliances and bathroom fittings.
The deal’s price represents a premium of over 50% to Wincanton’s share price before the offer, which is backed by the company’s board. The buyer said today that the deal would “Diversify CEVA's customer base … in partnering with prominent grocers and retailers in the UK.”
James Wroath, chief executive officer of Wincanton, said: “This offer will enable Wincanton to continue and accelerate the progress that has been made …. 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.”
CMA CGM is privately controlled by the billionaire Saadé family, which founded the shipping giant in Marseille in 1978. It has revenues of around $47 billion from around 500 vessels and 900 warehouses.
Rodolphe Saadé, its chairman, said: “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 directors, who are unanimously recommending the offer, were advised by HSBC.
