Disposals

RNS Number : 1385I

Wincanton PLC

09 June 2011

 



Wincanton announces disposal of German Road activities and businesses in Central and Eastern Europe to Raben and logistics operations in The Netherlands to JCL for an enterprise value of €46.5m

09 June 2011

Wincanton plc ("Wincanton" or the "Group"), the leading supply chain solutions provider, today announces that it has signed conditional agreements for the disposal of part of its operations in Mainland Europe. The intended sales consist of separate agreements under which its German Road activities and businesses in Central and Eastern Europe ("CEE") will be sold to companies in the Raben group ("Raben") and the logistics operations in The Netherlands will be sold to JCL Transport und Logistik GmbH ("JCL"). 

Raben agreement

Raben will acquire the Wincanton German Road activities which operate from 16 locations across Germany.  In addition it will acquire Wincanton's businesses in CEE comprising operations in Poland, Hungary, Czech Republic and Slovakia, which provide both in-country contract logistics solutions and operate regional transport contracts across the CEE countries. 

The enterprise value is €36.0m on a cash free, debt free basis before adjustment for normal levels of working capital.  The transaction is subject to, inter alia, notarisation, consultation with employee representatives and anti-trust clearances.

JCL agreement

Under this share sale agreement JCL will acquire the Wincanton logistics operations in The Netherlands which provide warehousing and transport solutions from five locations, including an international transport hub in 's-Heerenberg.

The enterprise value is €10.5m on a cash free, debt free basis before adjustment for normal levels of working capital.  The transaction is subject to, inter alia, consultation with employee representatives and anti-trust clearance.

Impact of the transaction

The net cash proceeds from the disposals are expected to be approximately €30m after accounting for debt-like items being sold with the businesses, adjustments relating to working capital, but before transaction costs and one-off costs in delivering cost savings in the retained German businesses.

Collectively, these businesses employ approximately 2,850 employees who will transfer to Raben and JCL respectively on completion of the sale.  The transactions will be subject to fulfilment of transaction-related statutory information and consultation obligations with employee representatives.

In the year ended 31 March 2011, these activities generated revenue of approximately €446.0m, and operating losses of approximately €(0.6)m. Gross assets at 31 March 2011 were approximately €155.0m.

The transaction follows a strategic review of Wincanton's business, which identified the objective of focusing on areas with significant growth potential and strengthening its leading position in core markets. Wincanton has also targeted a reduction in debt levels and the net proceeds of the disposal will be used to reduce net debt levels of the Group.

Eric Born, Chief Executive, Wincanton commented:

"The sale of the German Road activities, our businesses in Central and Eastern Europe and The Netherlands marks an important step in our strategy to focus more closely on areas where we have significant scale and strong growth potential.  We will work closely with Raben, JCL and our customers to maintain a high quality of service and ensure a smooth transition period.  I would like to personally thank the respective teams for their hard work and contribution to Wincanton over the years."

Ends

For further information, please contact:

Wincanton plc   01249 710 000

Eric Born, Chief Executive

Jon Kempster, Group Finance Director

Holly Porter, Group Marketing and Communications Director

Buchanan Communications  020 7466 5000

Charles Ryland / Jeremy Garcia / Helen Chan                 

Rothschild [phone]

Stuart Vincent / Niall McBride

 

END

 

 

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