 Wincanton points to extended levels of global sourcing by retailers and manufacturers for growth in traffic from the Far East of 11 per cent per year
Wincanton has developed a small presence in the container logistics market with the addition of terminals at Alconbury and Southampton over the past two years, but with 21 operations across the UK, Hanbury Davies represents a major expansion opportunity in this field for the firm and complements its existing global transport capabilities.
“There’s good growth in the container business,” said Wincanton managing director, Martin Taylor. “At 9-11 per cent a year, it is high growth and we want to get into a business like that.”
Wincanton points to extended levels of global sourcing by retailers and manufacturers for growth in traffic from the Far East of 11 per cent per annum and expected growth in sea container volumes of six per cent each year.
Hanbury Davies has 21 locations across the UK – including regionally Ipswich, Bury St Edmunds, Tilbury, Thamesport, Thurrock – and employs a workforce of 780 and operates 480 vehicles.
Its customer portfolio includes key freight forwarders and shipping lines and it provides a range of container services that enhance the efficiency of both inbound and outbound product flows through all major UK ports.
The acquisition represents the latest in a series of infill acquisitions which are enhancing Wincanton’s current profitability, broadening its business base and generating incremental opportunity for medium and longer-term growth.
Wincanton already employs 30,000 people across Europe, producing an annual turnover of over £1.9bn. The company offers extensive experience in many market sectors, including automotive, chemicals, consumer goods, food service, high tech, industrial, energy & petroleum and retail.
“Wincanton has a strong track record of growing both organically and through acquisition,” said the firm’s chief executive, Graeme McFaull.
“We expect to continue to enhance our strong organic growth with acquisitions which expand our range of services, broaden our sector expertise and reinforce our geographic presence in key markets. We see no shortage of such opportunities, in either the UK or Mainland Europe.”
“The considerable strengthening of our container activities in the UK complements our market leading intermodal business in mainland Europe and extends our offering for our existing customer base,” added Taylor.
“In Hanbury Davies, we have found a business that shares our vision and provides a strong cultural fit with Wincanton.”
The acquisition is subject to a further payment of £2.5 dependent on performance. Wincanton will bring Hanbury Davies under its own brand, but intends to run it as a separate entity, with no changes to staff.
“We would actively look to grow it,” said Taylor. “In fact, we will put our own container business – Alconbury and Southampton – into Hanbury Davies.”
Hanbury Davies itself is an expanding business, which has been growing its UK operations solidly over recent months. In the middle of last year the firm positioned itself to profit from the creation of a planned £300m deep sea container terminal at Middlesbrough by opening a new distribution and logistics depot at PD Ports’ Teesport Commerce Park.
The Northern Gateway Container Terminal (NGCT) was cited as the deciding factor behind the firm’s decision to make Teesport the latest site from which to run its container transport business.
In the 12 months to March 31, 2007, the container activities of Hanbury Davies reported on a pro-forma basis turnover of approximately £52m and EBITDA of approximately £4.3m.
Its customer portfolio includes major shipping lines and freight forwarders such as ECS, MSC and Samskip.
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