Wincanton PLC
11 October 2006
For Immediate Release 11 October 2006
Wincanton plc
Two acquisitions bring leadership in UK home
delivery and construction markets
Wincanton plc ('Wincanton' or the 'Group'), the leading European supply chain
solutions provider, today announces the acquisition of the entire share capital
of two privately-owned UK businesses.
RDL Holdings Ltd ('RDL'), the UK market leader in the provision of supply chain
services to the building products and construction industries, is being acquired
for an initial debt-free consideration of approximately £22.0m. Up to a further
£5.0m may be payable subject to the financial performance of RDL in the period
to 31 December 2007. Lane plc ('Lane'), a market leader in the home delivery
market, is being acquired for a consideration of up to £2.0m, plus the
assumption of approximately £6m of debt. The acquisitions will be financed from
Wincanton's existing committed banking facilities.
In the twelve months to June 30th 2006, RDL reported, on a pro-forma basis,
turnover of approximately £57.6m, EBIT of approximately £2.9m, and EBITDA of
approximately £3.8m. Net assets at 30 June 2006 were approximately £4.5m. In the
twelve months to 30 September 2006, Lane reported turnover of approximately
£47m.
Both companies operate in growing markets and benefit from strong existing
customer portfolios.
RDL has built an excellent reputation in the building products and construction
markets and has established successful long-term relationships with leading
businesses in these sectors. Its blue-chip customer portfolio includes such
companies as Ibstock, Hanson, Lafarge, Brett Landscaping, H & H Celcon,
Forticrete and Omya. RDL employs 350 people and gives national coverage from 200
vehicles on 38 sites across the UK. Supply chain services for the construction
industry are growing but fragmented. Continuing growth is anticipated from
sustained demand for housing new builds, commercial development and large-scale
infrastructure projects. As the market leader, RDL is very well-positioned to
benefit from the trend away from in-house operations and regional service
providers as the major companies in the sector seek increased supply chain
efficiency.
Lane has expanded rapidly in recent years, its national home delivery network
benefiting from the strong growth in internet shopping and multi-channel
retailing. Supply chain services in this market are fast-growing but fragmented,
and are believed to offer opportunity for both strong continuing growth and for
the consolidation of the currently under-developed industry infrastructure.
Lane's existing customers include Bosch, Electrolux, Homebase, and Magnet. Lane
also offers warehousing and transport services to other organisations including
The Body Shop and Aqualux. It employs some 750 people on 15 principal sites
across the UK and operates a fleet of some 330 vehicles.
Graeme McFaull, Wincanton's Chief Executive, commented:
'Wincanton has a strong track record of growing both organically and through
acquisition. These two businesses enable us to build further on our leading
presence in the UK, enter new sectors and expand our service offering.
We see continuing opportunities for growth, both organically and through
acquisition, across all our business areas, in both the UK and Continental
Europe.'
For further information please contact:
Wincanton plc
Graeme McFaull, Chief Executive 01249 710 000
Gerard Connell, Group Finance Director
Buchanan Communications
Charles Ryland / Jeremy Garcia 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.