A cash offer of 450 pence per share has been made by CMA CGM through its CEVA Logistics unit to Wincanton representing a premium of 52% to Wincanton stock's closing price of 297 pence on Thursday.
The new deal will take CMA CGM’s logistics to the UK supermarket sector.
Wincanton said its board intends to unanimously recommend that its shareholders vote in favour of CMA CGM's bid, which would lead to the UK company being delisted from the stock market.
The stock price of Wincanton increased 47% early on January 19, 2024 and reached the highest level since July 2021 as the offers value Wincanton at £566.6 million on a fully diluted with Wincanton’s enterprise value at £764.9 million the company said.
Commenting on the Acquisition, Sir Martin Read CBE, Chairman of Wincanton, said: "This offer for Wincanton from CMA CGM is testament to the strength of the business we have built, our strategy, our strong customer relationships and our excellent people. CMA CGM is a highly experienced operator in the industry, and as Wincanton becomes part of this larger business, it will be able to capitalise on the significant growth opportunities ahead.
“In unanimously recommending this offer to shareholders, the directors believe it is in the interests of all the company's stakeholders. While we remain confident in the long-term prospects of Wincanton and the wider sector, we recognise that the strong performance of the company has not been reflected in the performance of its shares in recent years. We therefore believe this offer represents the best opportunity for shareholders to realise the value of their investment with greater certainty."
James Wroath, Chief Executive Office of Wincanton, said: "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."