Latest News

GXO bets on e-commerce with $1.3 billion offer for UK peer Clipper


© Reuters.

By Sinchita Mitra and Yadarisa Shabong

(Reuters) -U.S.-based supply chain company GXO Logistics has agreed a potential deal to buy Britain’s Clipper Logistics for around $1.3 billion, betting on the lucrative e-commerce market and rising demand for warehouse space globally.

Shares in London-listed Clipper, which fulfils orders and handles returns for companies such as online clothing retailer ASOS (LON:ASOS) and Swedish clothing firm H&M, were up almost 14% at 885 pence by 1039 GMT, after the two companies said separately they had agreed terms of a possible deal.

The pandemic has spurred a boom in online shopping over the last two years, creating more demand for e-fulfilment and warehousing space as companies struggle with supply chain issues and logistical challenges.

GXO, which counts Apple (NASDAQ:AAPL), Nike (NYSE:NKE) and Nestle among its clients, has proposed buying Clipper in a cash and stock deal implying a total value of 920 pence per Clipper share, or a premium of 18% to Friday’s closing price.

The companies said in separate statements that Clipper shareholders would be able to choose the proportion in which they receive new GXO shares and cash.

The deal would help Greenwich, Connecticut-based GXO expand its customer base in the e-commerce space, and make a foray into Germany and Poland.

Clipper owns 11.8 million square feet of warehousing space and operates a fleet of more than 350 vehicles across 55 sites in Europe. GXO, which was spun off from XPO Logistics in August last year, owns warehouses in 869 locations spanning 27 countries in North America and Europe.

Clipper had also drawn takeover interest in November 2019, when investment firm Sun Capital approached the British firm but walked away soon after.

Blackstone (NYSE:BX) last week said it was leading a 21 billion euro ($23.87 billion) recapitalisation of Mileway, the biggest operator of urban warehouses in Europe.

($1 = 0.8799 euros)

GXO bets on e-commerce with $1.3 billion offer for UK peer Clipper

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Tech investors are suffering the second stocks rout of the COVID pandemic—and Wall Street thinks it could get far worse

Previous article

‘I’m in dire need of help.’ I have $140K in student loans, and recently had to quit my job making $125K because I have anxiety. What should I do?

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News