Christian Salvesen on verge of $519 million takeover by French rival
British logistics firm Christian Salvesen is set for a '254.4 million ($519.4 million) takeover by French road transport group Norbert Dentressangle.
Dentressangle’s 92 pence ($1.88) per share offer represents a premium of 78.6 percent to Salvesen’s closing share price of 51.5 pence ($1.05) on Sept. 24, the last business day prior to the announcement of approaches from two unnamed parties.
The French firm, based in Saint- Vallier-sur-Rhone, said it has won support from the Salvesen family, company directors and other shareholders representing about 30.1 percent of the U.K. company’s share capital, as of Oct. 2.
The identity of the second suitor has not been revealed although Stewart Oades, Salvesen’s chief executive officer, said that any higher bid would be considered.
“The other party will have to determine whether they want to re-approach us,” he said. “We’ll just have to wait and see.'
Established in 1846 in Edinburgh, Scotland, Salvesen employs 14,000 people and specializes in managing outsourced supply chain operations for manufacturing and retail customers in the industrial, consumer and food sectors. It has about 200 sites in the United Kingdom, France, Benelux, Ireland, Portugal and Spain. Its major customers include Auchan, Danone, Carrefour, Ford, GM, Marks & Spencer, Morrisons and Unilever.
Now headquartered in Northampton, England, the company generated revenue of '899 million ($1.8 billion) in its last fiscal year.
In August, Salvesen sold its vegetable processing unit CS Foods to a U.K. subsidiary of Belgium’s Pinguin NV for '17.2 million ($34.7 million) in order to focus its activities towards logistics and transport.
Dentressangle said the enlarged group will become Europe’s largest truck and trailer operator, with 8,000 trucks and 10,200 trailers. Together, the merged entity will have 29,200 employees, 2.9 billion euros ($4.1 billion) of combined turnover (as per 2006) and 4 million square meters of operated warehouse space.
The French company expects the transaction to deliver annual synergies of about 25 million euros ($35.4 million) before interest and taxes by 2010, driven by cost savings on purchases, back office costs and information systems.
Dentressangle will finance the transaction through existing cash resources and senior credit facilities being made available by Soci't' G'n'rale of 225 million euros ($318.6 million).
“This transaction is a major step in the development of Norbert Dentressangle Group and our strategic plan to create a major player in the European market, which we view as having significant growth potential, and it will allow us to significantly expand our service offering to our customers,” said Jean-Claude Michel, CEO of Norbert Dentressangle.
David Fish, chairman of Christian Salvesen, said Christian Salvesen's board believes 'this represents a fair and attractive offer for shareholders. Christian Salvesen and Norbert Dentressangle Group have a strong strategic fit, sharing a common background, both having started life as family owned enterprises as well as being built up and developed with a spirit of innovation and entrepreneurial zeal.”