Agreement for sale of Pullman Fleet Services

RNS Number : 3136E

Wincanton PLC

05 November 2020

 

5 November 2020

Wincanton PLC

('Wincanton' or the 'Group')

Agreement for sale of Pullman Fleet Services

Wincanton plc, the largest British third-party logistics company, today announces it has agreed to sell its subsidiary, Wincanton Pullman Fleet Services Limited ("PFS"), its UK commercial vehicle repair and maintenance company, to asset management firm Aurelius Investments ("Aurelius").

The sale of PFS follows the recently announced agreement to sell Wincanton's containers operations ("Containers") and is aligned with the Group's strategy of focusing on growth opportunities in its core markets.  

The nature of the market in which PFS operates is such that its contracts are smaller and carry demand risk, meaning it is not aligned with Wincanton's core business model. As with Containers, PFS would require further investment in the near term and the sale allows Wincanton to focus on investing in areas offering higher returns.

The completion of this disposal will mark Wincanton's exit from Specialist Services and the Group will be structured around its four core markets: Digital & eFulfilment, Grocery & Consumer, General Merchandise and Public & Industrial. 

Wincanton will receive a nominal consideration for the sale of PFS.  After the transfer of net liabilities, primarily in respect of leased fleet and property, fees and provision for costs of transition and separation, the Group expects to report a small non-underlying gain on disposal.

The transaction will reduce the Group's annual revenue by approximately £30m but lead to a small benefit in the Group's underlying profit before tax.

James Wroath, Chief Executive Officer of Wincanton, said:  

"Wincanton has set out a clear strategy for achieving profitable growth and we have focused our teams and our investments towards those markets where we see the highest potential.  Our recent disposals of PFS and our containers operations, and subsequent exit from the Specialist Services sector, is clear evidence of our commitment to deliver this strategy.

"I'd like to thank our PFS colleagues for their contribution to the business and wish them every success for the future."

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For further information please contact:

Wincanton plc Tim Lawlor, Chief Financial Officer	Tel: [phone]
Headland Susanna Voyle Henry Wallers Jane Glover	Tel: [phone] Tel: [phone] Tel: [phone]

Notes to Editors

About Wincanton

Wincanton is the largest British third-party logistics (3PL) company, providing supply chain solutions to some of the world's most admired companies across a wide range of industries including retail, construction, defence and energy.

As a trusted and respected business partner, we design and implement services and solutions that range from setting up and operating distribution networks, through to bonded warehouses, technology hosting, container transport and storage. We strive for operational excellence in everything we do.

We work hard to understand and respond to our customers' needs, build long-term relationships and use our skills and expertise to deliver a smarter, added value service, every day. Our customers rely on us to make their businesses operate more efficiently and to gain a competitive advantage in their sector.

 

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