Clipper Logistics to be taken over by GXO Logistics for USD 1.27 Bn
Category: #retail  By Pankaj Singh  Date: 2022-02-22
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Clipper Logistics to be taken over by GXO Logistics for USD 1.27 Bn

Clipper Logistics, a warehousing firm that considers Asda, Morrisons, Marks & Spencer, and John Lewis among its customers, has agreed to be taken over by GXO Logistics for £940 million.

The board of the Leeds-based company unanimously approved the potential takeover offer from GXO Logistics of 690p per share along with shares in the Connecticut-based firm worth around 230p for every Clipper share.

Clipper Founder Steve Parkin, who holds 15% of the company shares, has agreed to vote in favor of the agreement. GXO and Clipper stated that the agreement provided a highly lucrative valuation with a premium of nearly 49% in comparison to the day before the offer was proposed.

Over the past decade, warehouses have become a thriving business, especially during the COVID-19 pandemic as online shopping has garnered a greater share of total spending. This shift to online shopping expedited during lockdowns. Clipper offers services to fast-growing retailers like JD Sports, Asos, and Boohoo and there have also been rapid expansions in the U.K. supermarket.

The logistics company is primarily focusing on clothing, with retailers supplying their online deliveries to the firm which manages stocks, picks, and packages clothes in warehouses. In addition, it also manages clothing returns, a costly and important issue for fashion retailers.

Clipper, which received nearly £3.8 million from the U.K. administration under the COVID-19 job retention scheme, also benefitted during the outbreak from the government’s huge spending on PPE (personal protective equipment). The company stated that it has processed over 1 billion PPE items during the outbreak and considered its newly made PPE unit as an opportunity for development in its annual report.

For the record, Parkin commenced Clipper’s business in 1992 with just one van delivering clothes for fashion retailers. Since then, the company has grown to over 10,000 employees across 55 sites in Poland, the U.K., Ireland, Germany, Belgium, and the Netherlands.

Source credit:

https://www.theguardian.com/business/2022/feb/21/john-lewis-logistics-clipper-takeover-gxo



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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