GXO makes an offer to acquire UK-based Wincanton

Greenwich, Conn.-based global contract logistics services provider GXO Logistics said earlier today it has made an offer to acquire Chippenham, UK-based Wincanton, a supply chain solutions services provider across myriad vertical markets.

GXO said it has made a $965 million cash offer for Wincanton.

The Wall Street Journal reported that GXO’s offer follows a $764.3 million offer made by CEVA, a subsidiary of France-based global ocean carrier CMA CGM, earlier this week, which followed an initial offer made in January for $716.5 million. The article added that: “Wincanton earlier this week said it was considering a rival proposal and that was sticking with its recommendation of Ceva’s bid.”

“Wincanton is a world class business, and we have long been impressed by their high-quality people and diverse customer relationships across key industries,” said Malcolm Wilson, Chief Executive Officer of GXO, in a statement. “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 realize. GXO has a long heritage in the UK and a demonstrated track record of seamlessly integrating businesses in this market. We’re proud that our operations support the growth of UK companies, create high value jobs, and enhance the communities where we operate. As a focused pure play logistics leader, we are committed to investing in superior, differentiated logistics solutions, and we are confident that this combination will generate significant value for our shareholders, customers, and employees alike.”

GXO officials cited various drivers for how acquiring Wincanton would advance its position as a global pure-play contract logistics leader and also create shareholder value, including:

• expanding GXO’s presence in key strategic growth verticals, with the combination expanding GXO’s offering and customer base in a number of growth verticals in the UK, providing GXO with a springboard to offer industrial services across Europe;
• GXO’s market-leading service platform for aerospace and defense in the U.S., with the combined company enhancing service for UK customers in that vertical by leveraging GXO’s capabilities and expertise;
• allow for new and existing customers to benefit from a broader range of services and capabilities and an expanded global platform;
• Wincanton customers will have the opportunity to seamlessly globalize their supply chain operations across the 27 countries where GXO operates;
• improve operations for UK and Ireland customers through advanced technology, as GXO prides itself on its technology and automation, with combination allowing Wincanton customers to enhance the efficiency and resilience of their fulfilment operations through advanced tech deployment;
• create significant value for shareholders and provide additional growth opportunities, with complementary service offerings, customer portfolios and footprints providing additional growth opportunities; and
• the complementary infrastructure and offerings will enable GXO to manage the combined company more efficiently, resulting in greater productivity and lower costs for the benefit of customers

A Reuters report observed that CEVA said that it “would consider its options after GXO topped its offer.”

GXO is comprised of more than 130,000 team members across more than 970 facilities totaling approximately 200 million square feet.

Should the deal for Wincanton come to fruition, it would not represent the first time GXO acquired a UK-based company. In February 2022, it acquired London-based Clipper Logistics plc, a provider of omni-channel retail logistics services.

“GXO is the natural buyer for Wincanton,” said Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of Ben Gordon Strategic Advisors (BGSA). “A combination would create a market leader in contract logistics across both sides of the Atlantic. A bidding war may continue, [but] I would expect that the Wincanton board would find the GXO offer to be the most compelling.”