Grocery logistics giant Wincanton to go private in £560m mega deal

The logistics firm has been the backbone of the UK’s grocery supply chain for almost a century but confirmed today it would be sold to shipping group CEVA, which is part of CMA CGM − owned by French Lebanese shipping magnate Rodolphe Saadé.

CMA CGM made an all-cash offer for Wincaton of 450p-per-share, a 52% premium on the firm’s closing price on January 18, which its board intends to unanimously recommend to shareholders.

Should the £566.9m offer be accepted, the UK company would be delisted from the stock exchange.

Wincaton chief executive James Wroath 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 toward 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.”

A spokesperson for CMA CGM said the deal would “Diversify CEVA’s customer base [by] partnering with prominent grocers and retailers in the UK”.

Founded in 1925 and named after the town in Somerset where it originated, Wincanton is the delivery partner for Waitrose. It also holds supply chain contracts outside of grocery, including with the Hinckley Point C nuclear power station.

It employs 20,300 people, including 5,000 drivers. Since the pandemic, with the rise in online shopping and deliveries, Wincanton’s revenues have jumped to £1.5bn.