Driving To Deliver Your Business

Another Major Road Haulage and Warehouse Operation Targeted by Logistics Finance Group

Gatemore Looks to Make Sweeping Changes at Wincanton Transport UK – News was broken by Reuters[1] this week that, despite only having a holding of 2% of the shares in the logistics company, Gatemore Capital Management[2] is pressing management at Wincanton[3], one of Britain’s largest road haulage and warehousing companies, to sell off one of the groups two divisions. Gatemore has been aggressive in the UK transport market of late with calls last March[4] for major changes at the DX Group[5], the parcel company which delivers legal documents in the UK, including passports.

The holding in DX shares was only 11.3% but, sure enough, by June DX had merged with John Menzies[6], split its business interests and shed top staff. In September Gatemore agreed to lead a GBP24 million refinancing and in October, having increased its share in the delivery company to 23.8% it managed to install equity holding directors[7] which it approved of.

The message to Wincanton is clear, Wincanton consists of two divisions, deliveries to retailers which follows on from its original 1925 historic role as a milk distributor, and the transport business which has contracts in the construction industry. The letter to investors which Reuters cites calls the group ‘a sleeping giant whose intrinsic value is underestimated by the market’, and is signed by Gatemore’s managing partner, Liad Meidar, who goes on to say: “We have engaged in constructive discussions with Wincanton’s management and, in private, are calling for the company to conduct a strategic review, sell one of its two divisions, fund the pension, and refocus the business.

In due course, we will discuss our ideas with other large shareholders and seek their support in promoting productive change in the company.”

Gatemore’s aggressive stance will doubtless sow some seeds of restlessness amongst the stockholders at Wincanton and news of the letter saw shares in the company rise to around 250 Pence from 223 a week ago but still well short of the 300+ they were at last year.

Another Major Road Haulage and Warehouse Operation Targeted by Logistics Finance GroupAnother Major Road Haulage and Warehouse Operation Targeted by Logistics Finance Group

References

  1. ^ Reuters (uk.reuters.com)
  2. ^ Gatemore Capital Management (gatemore.com)
  3. ^ Wincanton (www.wincanton.co.uk)
  4. ^ calls last March (www.handyshippingguide.com)
  5. ^ DX Group (www.dxdelivery.com)
  6. ^ John Menzies (www.menziesdistribution.com)
  7. ^ install equity holding directors (www.handyshippingguide.com)



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