American firm GXO Logistics to acquire UK's Clipper Logistics

03 Mar '22

2 min read

Pic: Jevanto Productions / Shutterstock.com

The boards of directors of GXO Logistics, Inc and Clipper Logistics plc have announced that they have reached agreement on the terms of a recommended cash and share acquisition of Clipper by GXO for £965 million (approx. $1.3 billion). The acquisition is a strategic combination which increases the opportunities for both in the e-commerce/e-fulfilment area.

The acquisition values each Clipper share at 920 pence, GXO said in a media release.

The deal will add to GXO’s geographic presence in Germany and Poland as well as vertical presence in life sciences, which are key growth areas; combine highly complementary service offerings, customer portfolios, and footprints in the UK and Europe; and strengthen the combined business’s technology returns and repairs expertise. It will also enhance GXO’s ESG leadership position given Clipper’s reverse logistics and circular economy offerings and its robust internal targets to minimise carbon emissions and waste.

Steve Parkin, executive chairman of Clipper, said: “As founder of Clipper, I am incredibly grateful to all the employees, customers and shareholders who have supported our company through this journey, from our IPO in 2014 at 100p, and enabled us to become a highly-valued leader in e-logistics and other high value-added logistics services. The offer from GXO presents a compelling opportunity for us to continue to grow our service offering, by partnering with a global, technology-driven logistics company. We have accomplished so much, and I am confident the combination of our two companies means the best days are ahead.”

Malcolm Wilson, chief executive officer of GXO, said: “Together, GXO and Clipper have a one-of-a kind growth opportunity, building on our shared commitment to a top-quality customer experience, innovation and industry leading expertise. Steve Parkin and the Clipper team have created an exceptional business with outstanding capabilities. We will build on it. Our combined complementary customer portfolios and breadth of offerings in high growth areas will affirm GXO’s position as a leading pure-play logistics provider. We’ll strengthen our returns and repairs capabilities, expand our e-commerce customer base, and bolster our presence in key growth areas, including Germany, Poland and life sciences, and accelerate the expansion of GXO Direct to Europe.”

GXO expects the acquisition to cover its cost of capital by the end of the third year post completion of the acquisition.

ALCHEMPro News Desk (KD)

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