Wincanton plc ('Wincanton' or the 'Group'), provider of supply chain solutions, has signed a conditional agreement for the disposal of its remaining operations in Mainland Europe (the "Disposal") to Rhenus AG & Co. KG ("Rhenus") via the disposal of Wincanton's Mainland Europe Holding Company.
The Disposal operations comprise Wincanton's German Intermodal and Contract Logistic activities, which operate from 38 locations, and Wincanton's businesses in France, which provide contract logistics and transport services and operate from 30 locations. Collectively, these businesses employ approximately 3,000 employees who will transfer to Rhenus upon completion of the Disposal.
Consideration from the Disposal will be approximately 44m (pre transaction costs). In addition, Rhenus will assume a net pension deficit of c.30m resulting in an enterprise value of 74m. The consideration will be payable in cash upon completion of the Disposal. The Disposal will be implemented by way of a share sale.
The transaction is subject to, inter alia, the approval of Wincanton's shareholders and a circular outlining the terms of the Disposal, including a Notice of General Meeting, will be sent to shareholders in due course. The Disposal is also subject to anti-trust clearance and approvals. Wincanton will be consulting with relevant employee representative bodies.
In the twelve months to 31 March 2011, these activities generated revenue of approximately 558m, and operating profit of approximately 4.1m. At 31 March 2011 Gross assets were approximately 181m.
Completion of the transaction will mark the exit of all of Wincanton's Mainland Europe activities. The net proceeds of the Disposal will be used to reduce net indebtedness of the Group.
Eric Born, Chief Executive, Wincanton commented: "The sale of our remaining businesses in Mainland Europe to Rhenus will enable us to focus on developing our leading position in the UK market, where we have greater scale and see significant potential for profitable growth. Rhenus has a strong reputation in the European market and the addition of these businesses to its portfolio will build on its leading position in intermodal services and contract logistics. Over the next few weeks, we will work together to ensure that service levels to our customers are maintained during the transition period. I would like to personally thank all of my colleagues in these businesses for their hard work and contribution to Wincanton over the years."