US logistics giant moves forward with £965m Clipper bid
Clipper Logistics a leading provider of value-added logistics solutions and e-fulfilment to the retail sector has agreed terms on a cash and share acquisition with New York-listed GXO Logistics, which values the business at £961m.
A week after the initial speculation of a deal the board of directors at both Clipper and GXO have confirmed a deal which values each share in the Leeds-based business at 920p, comprising 690p per share in cash and new GXO shares worth 230p.
The deal has been described as a “compelling strategic combination which significantly increases the opportunities for both businesses” and a “one-of-a kind growth opportunity”.
Steve Parkin, executive chairman, Clipper Logistics ©Clipper
Steve Parkin who founded Clipper in 1992 and is currently executive chairman said he was grateful to all employees, customers and shareholders who have supported the business on its journey from “IPO in 2014 at 100p to a highly-valued leader in e-logistics and other high value-added logistics services”.
He added: “The offer from GXO presents a compelling opportunity for us to continue to grow our service offering, by partnering with a global, technology-driven logistics company. We have accomplished so much, and I am confident the combination of our two companies means the best days are ahead. It will give Clipper an enhanced opportunity to develop its business as part of a larger global group with the resources to capitalise on attractive market opportunities.”
Malcolm Wilson, chief executive officer of GXO, said: “Together, GXO and Clipper have a one-of-a kind growth opportunity, building on our shared commitment to a top-quality customer experience, innovation and industry leading expertise.
“Steve Parkin and the Clipper team have created an exceptional business with outstanding capabilities. We will build on it. We believe our very strong cultural fit, deep familiarity with local industry dynamics and commitment to invest and grow in highly attractive markets will enable a seamless integration. On behalf of our more than 100,000 GXO team members, including 33,000 in the UK, I look forward to welcoming Clipper’s talented people to our organisation.”
Wilson noted the detail would expand GXO’s presence in key growth areas, including Germany, Poland and life sciences and would help accelerate its expansion of GXO Direct to Europe.
The deal comes after Clipper 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. It also follows the business CE Repair Services Group B.V (CE Repair) in the Netherlands for £14.8m as it looked to boost its market position.
The sale which will net Parkin c. £104m and a further £25m in GXO shares, follows on from the executive chairman cashing in shares worth £62.2m in January 2021, when took advantage of a huge rise in the business’s share price to nearly halve his personal stake. At the time 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.
This 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.
