Clipper prepares for £1bn takeover offer
Clipper Logistics a leading provider of value-added logistics solutions and e-fulfilment to the retail sector is reported to be preparing to accept a potential takeover offer from New York-listed GXO Logistics.
The deal which would a cash and share takeover would value the Leeds-based company which was one of the winners of the changing consumer habits of the last two years at £943m, representing a 32% premium on the company’s three month average share price.
The business reported in December that it was trading well with half year revenue up by 33.1% to £406.1m thanks to high-profile customer contract wins, organic growth in e-commerce and a robust rebound in activities in non e-fulfilment.
The reported offer from GXO would see the US firm pay 690p in cash and issue 230p of new GXO stock for each Clipper share, however it is understood that no offer has yet been received by Clipper’s board.
Clipper’s board has according to the Financial Times confirmed to its rival that it would accept an offer on those terms.
If successful the acquisition of Clipper would according to the announcement from Clipper “significantly increases the opportunities for both businesses in the high-growth e-commerce/e-fulfilment areas”.
A deal would also ensure GXO was at the centre of the UK supply chain and online retail distribution, having previously acquired the UK contract logistics division of Kuehne+Nagel in 2020.
GXO’s chief executive Malcolm Wilson told the Financial Times: “This potential acquisition would enhance GXO’s position as a successful pure-play logistics leader. Our two companies have highly complementary service offerings, customer portfolios, and footprints in the UK and Europe.”
This isn’t the first approach for Clipper which has itself been looking to boost its position through deals, most recently acquiring CE Repair Services Group B.V (CE Repair) in the Netherlands for £14.8m
In 2020 a potential bid from US private equity firm Sun Capital Partners Group to take the group private failed to deliver a result with Clipper noting at the time that the board and Sun Capital “were unable to agree terms that would be recommendable to Clipper shareholders, given the medium term growth prospects of the company”.
Steve Parkin, executive chairman, Clipper Logistics ©Clipper
Since then the firm’s executive chairman, Steve Parkin has cashed in shares worth £62.2m, selling more than 10% of the company he founded in January 2021. Parkin took advantage of a huge rise in the business’s share price to nearly halve his personal stake although Clipper noted it was part of “an estate planning exercise” and that the founder “intends to remain a significant shareholder for the long-term” in the business.
Parkin’s initial sale was followed in September by a further sale by the executive chairman and two other board members who collectively sold a portion of their shares for £4.2m, taking advantage of a 15-month rise in its share price.
