Autologic becomes acquisition target
Autologic, one of Europe’s largest finished vehicle logistics companies and part owner of Groupe CAT, has become the target of an acquisition attempt by a private equity firm. The buyer, which as yet is unnamed, has made an offer for all Autologic’s share capital for 350p per share. The deal is subject to due diligence and financing, although Autologic’s board has agreed to a request from the potential buyer to work with them on purchase.
The bid comes on the same day that the company announced its interim results for the first half of 2003. Compared with the same period in 2002, revenues increased by 2.5% to £358.6m (€523.6m), although taking into account currency fluctuations there was a 4% drop. Total operating profit fell to £18.3m (€26.7m) from £21.8m (€31.8m) in 2002.
The company has been affected by a significant fall in new car registrations in two of its largest markets, Belgium and France. To counter falling revenues the management has been re-structuring these two operations in an attempt to increase productivity to the same level as at its more efficient units in Spain and the UK. Taking into account currency fluctuations, revenues from Autologic’s joint venture with TNT and Wallenius Wilhelmsen, Groupe CAT, fell by 6% compared with 2002. This was as a result of the weak performance by its largest customer (and former owner) Renault which saw its car registrations drop by over 10% in its home market, France.
