Wincanton has acquired the entire share capital of the privately-owned RDL Holdings for an initial debt-free consideration of £22 million. A further £5 million may be payable subject to RDL’s financial performance in the period to December 31, 2007.
The acquisition, which will be financed in cash from Wincanton's existing facilities, further strengthens the Group's position in the UK market.
RDL is the UK market leader in the provision of supply chain services to the building products and construction industries, and has established successful long-term relationships with leading businesses in the sector.
RDL employs 350 people and has 200 vehicles on 38 sites across the UK that give it national coverage.
While supply chain services for the construction industry are growing, they are fragmented and predominantly driven by increasing demand for new build housing, commercial development and large scale infrastructure projects. RDL is well positioned to benefit from the trend away from in-house operations and regional providers as the major companies in the sector seek increased supply chain efficiency.
Wincanton chief executive Graeme McFaull commented: “The acquisition of RDL establishes a leading position for Wincanton in the growing construction logistics sector, building significantly on our existing customer operations in this market and bringing attractive opportunities for further growth.”
He added that the company expects to make further infill acquisitions to reinforce Wincanton’s geographic presence, enter new sectors and expand its service offering
