Leeds-based Clipper Logistics set to be acquired by New York listed GXO Logistics after deal is agreed

Yorkshire-based Clipper Logistics, which distributes goods for Marks & Spencer, Asda and Morrisons, is set to be acquired by New York listed GXO, the largest contract logistics provider in the world.

The boards of directors of GXO Logistics, and Clipper Logistics plc have reached agreement on the terms of a recommended cash and share acquisition by which the entire issued and to be issued ordinary share capital of Clipper will be acquired by GXO.

The terms of the acquisition value each Clipper Share at 916 pence, valuing Clipper's existing issued and to be issued share capital at approximately £961 million.

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

The boards of directors of GXO Logistics, and Clipper Logistics plc have reached agreement on the terms of a recommended cash and share acquisition by which the entire issued and to be issued ordinary share capital of Clipper will be acquired by GXO.

Commenting on today's announcement, 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.

"In recommending this offer to shareholders, the directors of Clipper believe it is in the best interests of all the company's stakeholders.

"The offer from GXO gives shareholders the opportunity to receive a high portion of cash at a significant premium to the prevailing share price and a premium to the all-time closing high, whilst also being given the opportunity to benefit in the potential future upside in the combined group through the element of share consideration. It will give Clipper an enhanced opportunity to develop its business as part of a larger global group with the resources to capitalise on attractive market opportunities."

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Leeds-based Clipper Logistics reaches agreement on possible cash and share offer...

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.

"We believe our very strong cultural fit, deep familiarity with local industry dynamics and commitment to invest and grow in highly attractive markets will enable a seamless integration. On behalf of our more than 100,000 GXO team members, including 33,000 in the UK, I look forward to welcoming Clipper's talented people to our organisation. We're very excited about the tremendous possibilities ahead and the value we can create for customers, employees, shareholders and the communities we serve."