Leeds-based Clipper Logistics reaches agreement on possible cash and share offer from New York-listed GXO

Clipper Logistics, which distributes goods for Marks & Spencer, Asda and Morrisons, has reached agreement on the key terms of a possible cash and share offer for the company from New York listed GXO, the largest contract logistics provider in the world.

The board of Clipper has confirmed to GXO that, should a firm offer be made on the financial terms of the possible offer, it is minded to recommend it unanimously to Clipper shareholders, subject to the agreement of other customary terms and conditions.

The statement said the benefits for Clipper shareholders included the highly attractive valuation, providing a material cash component, plus the opportunity for all Clipper shareholders to participate in the significant future potential upside of the combination through the ownership of GXO shares;

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Clipper, which is premium listed on the Main Market of the London Stock Exchange, is a retail logistics specialist, which provides consultancy-led services to its blue-chip client base.

The board of Leeds-based Clipper Logistics has reached agreement on the key terms of a possible cash and share offer for the company from New York listed GXO, the largest contract logistics provider in the world.

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In addition to its presence in the UK, Clipper has an increasing presence in mainland Europe, with operations in Poland, Germany, the Republic of Ireland, the Netherlands and Belgium.

For the year ended 30 April 2021, Clipper generated revenue of £696 million.

The Clipper Group was founded by entrepreneur Steve Parkin in 1992 with one van delivering clothing for fashion stores.

In August last year, Clipper revealed it had signed a new five-year deal with Ireland’s largest sports retailer Life Style Sports (Ireland Limited).

GXO is the largest contract logistics provider in the world. It was a spin-off from XPO Logistics, Inc in August 2021 and is now separately listed on the New York Stock Exchange with a market capitalisation of $ 9.3 billion as at close of business on 18 February 2022 .