Wincanton acquires CEL
Article Date: Nov 06 2008European supply chain specialist Wincanton Plc has completed its fourth deal this year as part of its plans to expand its operations.
The group bought container logistics provider CEL Group for £19.5 million. The value of the deal, which includes its subsidiaries, could rise by as much as £4.5 million if CEL meets agreed financial targets by September next year.
This is the latest in a series of in-fill acquisitions to boost the group’s profits and broaden its operations. The previous additions to its business this year have included Product Support, a logistics company serving the defence and aerospace markets, and the container logistics operations of Hanbury Davies.
The CEL acquisition introduces Wincanton to major shipping lines, such as Maersk, Yang Ming, Hanjin Shipping, Coscon and Hamburg-Sud.
Wincanton chief executive Graeme McFaull said the deal gives the group a strong position in a sector with very attractive growth prospects. “We now have a solid platform in container and intermodal logistics, and in related services such as customs clearance, in each of our focus markets of the UK, Germany, France and Poland, and see this as a sector with good pan-European potential.”
CEL provides container haulage, storage and maintenance services in the UK, employing 470 people who operate a fleet of some 370 vehicles. In the year to September 2008, the company reported EBITDA of some £6.2 million from a £60.7 million turnover.
