Wincanton to Sell Remaining Operations in Mainland Europe
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.
In the 12 months to March 31, 2011, these activities generated revenue of approximately E558m, and operating profit of approximately E4.1m. Gross assets were approximately E181m at March 31, 2011.
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. The disposal is also subject to anti-trust clearance and approvals.
Under the transaction, Rhenus will assume a net pension deficit of c.E30m resulting in an enterprise value of E74m.
Eric Born, CEO of Wincanton, said: â€œThe 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.
â€œOver 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.â€
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