Wincanton’s farewell to mainland Europe

The deal with logistics firm Rhenus covers Wincanton’s operations in 38 locations in Germany and its businesses in France, which provide contract logistics and transport services and operate from 30 sites.

Chief executive Eric Born, who took the helm in December, said the proposed disposal will enable Wincanton to focus on its core UK market.

The sale price is 44 million euros (£38.5m), while Rhenus will assume a pension deficit of around 30 million euros (£26.2m).

Wincanton currently employs 26,000 people and boasts Sainsbury’s, WH Smith and Comet among high profile clients in the UK.

It recently announced plans to grow its operations in the public sector, after it signed its first deal with outsourcing firm Serco. Other potential growth areas include defence, where it already works with BAE Systems.

John Lawson, an analyst at Investec Securities, said the decision to remove the distraction of mainland Europe trading looked sensible.

However, he added: “The key risk is largely economic, with a business now entirely focused on the UK and Ireland markets.”

n Egham-based instruments and controls business Spectris is to acquire Connecticut, US-based Omega Engineering in a deal worth 475 million US dollars (£291m). Omega specialises in tools that measure and control temperature, pressure, humidity and conductivity and made profits of about £24m in 2010.

n Health centre property specialist Assura said trading since the start of April has been on track with good strategic and operational progress. Uncertainty surrounding the NHS reorganisation will not have a material impact on long term growth and further developments should commence this year, the group added.