French transport giant Norbert Dentressangle (ND) has emerged as the shock bidder for UK logistics firm Christian Salvesen.
Salvesen’s board has recommended ND’s offer of 92p per share, almost 80% above its current price, and which values the company at £254m. It would create a business with a combined turnover of some £1.9bn and a fleet of 7,800 vehicles.
ND believes the deal, if successfully completed, will reinforce its position in 13 European countries and significantly increase its presence in the UK. Jean Claude Michel, CEO of the French firm, adds: “This transaction is a major step in the development of Norbert Dentressangle and our strategic plan to create a major player in the European market, which we view as having significant growth potential and it will allow us to significantly expand our service offering to our customers.”
Michel said that there would be no significant job losses at the combined firm as there was little overlap in their operations. He predicts annual savings of around £17m from the deal through combining purchasing and other synergies.
Stewart Oades, CEO of Christian Salvesen, says he is pleased by the deal: “The combination will create a leading transport and logistics business with a wide range of services and capabilities.”
ND has been looking to increase its presence in the UK for some time. Back in April Motor Transport quoted Michel as saying it would be much bigger here by the end of 2007. The MT article went on to add: “You’d be surprised if it wasn’t casting an eye over the likes of Christian Salvesen…”
Thomas Cullen from analysts Transport Intelligence says that ND seems to be overpaying for Salvesen: “I have to say I’m a little surprised, particularly at the price. It’s a dramatic figure for a sector and a company like this. At 50p per share it would have been a nice addition to ND’s business.
“I’d be interested to hear where ND’s management can achieve more savings than Stewart Oades has.”
Salvesen shareholders will vote on the deal during November with both parties hoping for completion by the end of the year.
