Wincanton shares soared on Friday after the logistics group announced it had agreed takeover terms with CEVA Logistics.
CEVA Logistics, a subsidiary of CMA CGM, has reached an agreement to acquire Wincanton in an all-cash offer valued at approximately £566.9 million. CEVA will pay 450p per share, representing a significant premium of 52% compared to Wincanton’s share price yesterday.
The deal valued Wincanton at roughly an EV/EBITDA of 6.8x.
The acquisition will expand CEVA’s contract logistics capabilities in the UK and Ireland by leveraging Wincanton’s expertise in partnering with grocery retailers and consumers. CEVA believes the combination will support future growth and innovation by bringing the backing of a well-capitalised, global logistics provider.
CEVA expects the acquisition to create cost synergies by sharing best practices and key talent.
Wincanton’s board are recommending shareholders vote in favour of the takeover.
Wincanton recently announced trading was in line with expectations as revenue grew 1.3% in Q3.