UK’s Exel to buy Tibbett & Britten for 328 mln stg
LONDON, June 16 (Reuters) – Britain’s Exel Plc (LSE: EXL.L – news) is buying haulier Tibbett & Britten Plc (LSE: TBG.L – news) for a recommended 328 million pounds ($595 million) in cash to boost its growth opportunities, the storage and delivery firm said on Wednesday.
The offer, worth 668 pence per Tibbett & Britten (T&B) share, came a day after T&B said it had received an approach at a significant premium to Monday’s 490 pence closing share price, sending it shares to a 584.5 pence close on Tuesday.
Exel chief executive John Allan said the company’s “customer-focused strategy is delivering good organic growth, and the acquisition of Tibbett & Britten will expand our geographic and sector coverage, enabling us to provide enhanced services to our new and existing customers”.
Exel forecast annual cost savings of 15-20 million pounds from the integration of T&B and elimination of duplicated functions.
T&B executive chairman John Harvey said the takeover was “on terms that deliver good value to our shareholders”.
T&B, established in 1958, has operations across Europe, North and Latin America, the Middle East and Africa.
It has suffered a series of setbacks in recent months, warning in November that a hiccup at its Mexican business would hit 2003 profits. This followed a loss of contracts with U.S.-based supermarket group Safeway Inc (NYSE: SWY – news) and Britain’s biggest clothing retailer Marks & Spencer Group Plc .
However, the firm, which moves and stores goods for firms like Coca-Cola Co. and Tesco Plc (LSE: TSCO.L – news – msgs) , said last month business was back on track after a good start to the year.
