Wincanton is to strengthen its European presence with the acquisition of Premium Logistics’ principal French operations for an initial debt-free consideration of approximately €24 million.
The acquisition, when combined with Wincanton's existing Strasbourg-based activities, gives Wincanton national coverage of the important French market, an enhanced portfolio of customer contracts and further strength and depth of management resources.
Pro-forma annual turnover of the enlarged French business, which will operate from 29 sites across France, is expected to be approximately €150 million. This represents a substantially stronger and broader business base from which Wincanton can serve both the UK and continental Europe cross-border requirements of its portfolio of blue-chip customers.
In the twelve months to June 30, 2005, Premium reported, on a pro-forma basis, turnover of approximately €100 million.
Premium's contract base includes multinational FMCG companies, leading retailers of grocery, DIY and home furnishing products and major manufacturers of automotive, chemical and lubricant products. Its service offering is focused principally on warehouse management and, although it also manages customers' fleet requirements, it has no transport operations of its own.
“This acquisition significantly strengthens our operational capabilities and customer portfolio in the important French market,” commented Paul Bateman, Wincanton's chief executive. “It reinforces our commitment to our strategy of combining leadership in national markets with strong cross-border, regional and Pan-European capabilities.”
Last month, Premium Logistics sold its non-French international subsidiaries to FM Logistic. [Refer FM Logistic acquires Premium Logistics’ international subsidiaries (outside France)]
