LONDON: GXO Logistics, Inc. (“GXO”) has announced a cash offer for Wincanton Plc (“Wincanton”), a leading UK provider of supply chain solutions, valuing the company at £762 million.

Wincanton shareholders will receive 605 pence in cash for each share they hold, a 26 per cent. premium over the final offer from CEVA, a rival bidder, and a 104 per cent. premium over the share price before the offer period.

The offer implies an enterprise value multiple of 7.0 times Wincanton’s underlying EBITDA, after accounting for £45 million of annual synergies, and 11.9 times before synergies.

GXO said the acquisition would create a leading global logistics company with enhanced scale, capabilities, and customer offerings. It also said it expected the Wincanton board to recommend the offer in due course.

Commenting on today’s Announcement, 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 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.”