Merger of Chilled Operations

RNS Number : 5386I

Wincanton PLC

20 November 2008

 



For immediate release

20 November 2008

Wincanton plc

Wincanton agrees merger of chilled consolidation activities with 

Culina Logistics

Wincanton plc ('Wincanton' or the 'Group'), the leading European supply chain solutions provider, today announces that an agreement has been reached to merge its chilled consolidation activities in the UK with Culina Logistics Limited ('Culina'), with effect from 28 March 2009. 

The agreement covers activities at Wincanton's Trafford Park and Gloucester multi-user sites and outbases, as well as the associated third party transport contracts. In the twelve months to 31 March 2008, on a pro-forma basis, Wincanton's chilled consolidation activities generated operating profit of approximately £1.3m and gross assets were approximately £7.5m. Wincanton will retain a 20 per cent equity stake in the enlarged business, which will be managed and operated by Culina.

The merger of interests with one of the sector's leading operators provides a strategic opportunity for Wincanton to participate in a wider industry solution for the chilled consolidation marketplace.  

Culina provides primarily chilled logistics solutions to the food and drink industry from nine strategically-located distribution centres across the UK. On a pro-forma basis, the combined business achieved revenues of approximately £205m in the year ended 31 March 2008. 

The profit attributable to the 20 per cent stake in the enlarged Culina is expected to be accounted for as an associate from 1 April 2009. The transaction is expected to be broadly earnings neutral in the first year and will provide an opportunity for Wincanton to continue to benefit thereafter from the profit improvement opportunities that the enlarged business is expected to deliver.

Graeme McFaull, Wincanton's Chief Executive commented:

'The merger of Wincanton's chilled consolidation operations with Culina will create a UK leader in the sector, ensuring market-leading levels of service for our chilled consolidation customers. 

This is an attractive industry solution for Wincanton, allowing us to retain an equity share in the enlarged business and in the profit improvement opportunities that we expect to be delivered.'

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

 

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