The board of U.K. logistics firm Wincanton said Friday it unanimously recommended that shareholders approve GXO Logistics Inc.’s (NYSE: GXO) $965 million all-cash offer to acquire the company.
The Wincanton board withdrew its recommendation of Ceva Logistics S.A.’s lower-priced offer for the company. Based on current foreign exchange rates, the GXO offer is priced at $7.75 a share, while the CEVA offer is priced at $6.07 per share, or approximately $764 million.
“The Wincanton directors are pleased that the public offer process, triggered by their recommendation of Ceva’s… offer on 19 January 2024, is maximizing value and delivering a significant premium to Wincanton shareholders,” the board said.
Greenwich, Connecticut-based GXO proposed its buyout offer on Thursday, two days after Wincanton’s board had recommended approval of Ceva’s proposal, which was revised higher after word went public about GXO’s possible interest in Wincanton.
Founded in 1925 as a milk hauler, Wincanton is a key player in the aerospace, electric utilities and industrial categories, verticals that GXO highlighted in its Thursday announcement.
“Wincanton is a world-class business, and we have long been impressed by their high-quality people and diverse customer relationships across key industries,” said Malcom Wilson, GXO’s CEO. Wilson added that “our superior offer reflects our conviction in the value of this business and the opportunities the combined company will realize.”
GXO, which serves 27 countries, including those in the U.K. and continental Europe, said the proposed acquisition will provide it with a “springboard” to offer industrial services across Europe. Wincanton customers will be able to leverage GXO’s network to expand their operations, GXO said.