£965m Clipper Logistics takeover completed

The takeover of Leeds-headquartered Clipper Logistics by New York-listed GXO Logistics is now complete.

The entire issued and to be issued share capital of Clipper is now owned by GXO. New GXO shares have been approved for listing on the New York Stock Exchange, taking effect on Friday.

Clipper has applied to the Financial Conduct Authority and the London Stock Exchange to de-list its shares from the premium listing segment. Clipper shares will stop trading on LSE’s main market for listed securities on Wednesday – 25 May.

Clipper Logistics agreed to the £965m cash-and-shares takeover offer by GXO in late February.

Malcolm Wilson, chief executive officer of GXO, previously explained the deal would provide a “one-of-a kind growth opportunity” which would expand GXO’s presence in key areas, including Germany and Poland and would also help accelerate the expansion of GXO Direct to Europe.

Earlier this year executive chairman Steve Parkin, who founded Clipper in 1992, said he was confident the combination of the two companies would 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.”

Clipper was one of the businesses to benefit from lockdown and 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 has continued to be acquisitive and purchased  CE Repair Services Group B.V (CE Repair) in the Netherlands for £14.8m in a move designed to boost its market position.

The sale nets Parkin over £104m and a more than £25m in GXO shares and comes after the executive chairman cashed 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.