23rd Oct 2008 07:00
For immediate release 23 October 2008
Wincanton invests in its German road network
Acquisition announced today strengthens presence in Koblenz
Wincanton plc ("Wincanton" or the "Group"), the leading European supply chain solutions provider, today announces the acquisition of the Koblenz-based warehousing and transport specialist businesses ELI-Transport GmbH and ELI-Lagerhaus GmbH ("ELI") for a consideration of up to €15m.
ELI provides warehousing and national and international groupage services to customers in the industrial and consumer goods sectors. It employs 130 people based at two locations in the Koblenz area and operates a fleet of 100 vehicles. The acquisition will provide a strong, profitable base for Wincanton's network in an important geographic region. Wincanton's road network in Germany operates from 42 locations and provides both a platform for domestic distribution and a gateway for international transport flows for our contract logistics and intermodal customers.
Wincanton is acquiring ELI for an initial debt-free consideration of approximately €12m. Up to a further €3.0m may be payable subject to the financial performance of ELI in the period to 30 November 2009. Wincanton will also enter into a lease with the vendors for the operational properties in Koblenz. The acquisition will be financed from Wincanton's existing committed banking facilities.
In the twelve months to December 2007, the transport and warehousing activities of ELI reported turnover of approximately €20.5m, EBITDA of approximately €2.0m and EBIT of approximately €1.8m (on a pro-forma basis adjusted for incremental lease payments). Net assets at 31 December 2007 were approximately €1.4m.
The acquisition is in line with Wincanton's strategy of seeking to strengthen further its presence in key areas to develop its existing network, through either in-fill acquisitions or strategic partnerships. Completion of the acquisition is subject to the appropriate merger clearances from the German regulatory authorities.
Graeme McFaull, Wincanton's Chief Executive, commented:
"Infill acquisitions such as ELI, in addition to the profit improvement already being made in our existing operations, will continue to reinforce the operational and strategic progress of our German road network."
For further information please contact:
Wincanton plc Graeme McFaull, Chief Executive 01249 710 000
Gerard Connell, Group Finance Director
Buchanan Communications Charles Ryland / Jeremy Garcia 020 7466 5000
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