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Clipper confirms £943m offer by GXO Logistics

Lauretta Roberts
21 February 2022

E-commerce fulfilment provider Clipper Logistics, which provides services to Marks & Spencer, Boohoo, John Lewis, ASOS, JD Sports, Morrisons and Asda among others, has confirmed it has received a £943m offer from American giant GXO Logistics.

London-listed Clipper said it had reached agreement on the key terms of a possible cash and share offer and, should a firm offer be made, it would be "minded to recommend it unanimously" to its shareholders. 

The 920p per share offer represents a 49% premium on Clipper's closing price on 18 February 2022, and would be comprised 690p in cash with the balance made up from GXO shares.  

GXO is intending to offer a "mix and match facility" to Clipper shareholders under which Clipper shareholders may elect, subject to availability, to vary the proportions in which they receive new GXO shares and cash in respect of their holdings in Clipper shares. 

The American business said the purchase of Clipper would allow it to access the British firm's expertise and technology in returns and repairs allowing it to expand the range of e-fulfilment services it can offer.  It would also provide synergies and cost savings in procurement, as well as providing a presence in Germany and Poland, among other benefits.

For the year ended 30 April 2021, Clipper generated revenue of £696 million with an underlying EBITDA of £43 million. GXO is the largest pure-play contract logistics provider in the world; it is listed in New York with a market capitalisation of $9.3 billion. For the year ended 31 December 2021, GXO generated revenue of $7.9 billion ($5.79 billion) and net income attributable to common shareholders of $153 million (£112 million).

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