Logistics Firm Wincanton Weighs Possible Merger With Peer Eddie Stobart
Wincanton Plc is mulling a possible merger with Eddie Stobart Logistics Plc, the two companies said on Friday, in what could create one of Britain's largest logistics companies.
Eddie Stobart, known for its green and red trucks, is also in buyout talks with one of its largest investors DBAY Advisors.
The news comes just 10 days before the deadline for DBAY to make a buyout bid or walk away. Wincanton is required to do the same by November 15.
No proposal has been put forth by Wincanton to Eddie Stobart, and Wincanton said it was performing due diligence on the company and its assets.
Eddie Stobart has been hit by a series of bad news this year, including Chief Executive Officer Alex Laffey's departure and suspension in trading of its stock in August after a financial review delayed half-year results.
The company was also the subject of a buyout interest from TVFB Ltd, owned by former Stobart Group boss Andrew Tinkler, before dropping out of the race this week.
Until 2014 Eddie Stobart was a unit of the Stobart Group, which is now the company's second biggest shareholder with an 11.8% stake.