29th May 2008 07:00
For Immediate Release 29 May 2008
Wincanton Plc
Acquisition establishes strong presence in the defence and aerospace markets
Wincanton plc ("Wincanton" or the "Group"), the leading European supply chain solutions company, today announces the acquisition of Product Support Holdings Ltd ("PSHL"), a leading provider of logistics solutions to defence and aerospace markets, primarily in the UK.
PSHL is being acquired for an initial debt-free consideration of approximately £27.0m with up to a further £3.0m payable subject to the financial performance of PSHL in the period to 31 March 2009. The acquisition will be financed from Wincanton's existing committed banking facilities.
The acquisition represents the latest in a series of in-fill acquisitions which are enhancing Wincanton's profitability, broadening its business base and generating incremental opportunity for medium and longer-term growth.
In the twelve months to 31 March 2008, PSHL reported, on a pro-forma basis, turnover of approximately £19.4m, EBITDA of approximately £3.6m and EBIT of approximately £3.4m. Net assets at 31 March 2008 were approximately £3.1m.
PSHL operates from 25 support centres, mostly in the UK, and employs 422 people. The customer portfolio includes AgustaWestland, BAE Systems and Honeywell. PSHL provides a range of logistics and support solutions tailored primarily to the defence and aerospace industries. PSHL's core expertise lies in the management of time-critical spare parts and components. Its services include specialised storage, protective packaging design and manufacture, security screening and distribution. Wincanton believes there is scope to develop these areas of expertise into new sectors. PSHL has already had initial success with new business wins in the petroleum industry.
This acquisition will give a strong presence in the defence and aerospace logistics markets, further diversify the Group's blue-chip customer portfolio and expand Wincanton's service offering to existing customers both in the UK and Mainland Europe.
Graeme McFaull, Wincanton's Chief Executive, commented:
"Wincanton has a strong track record of growing both organically and through acquisition.
PSHL's market-leading expertise, in new industries for Wincanton, will provide a further exciting growth opportunity."
For further information please contact:
Buchanan Communications
Charles Ryland / Jeremy Garcia 020 7466 5000
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