Acquisition

Wincanton PLC 11 October 2006 For Immediate Release 11 October 2006 Wincanton plc Two acquisitions bring leadership in UK home delivery and construction markets Wincanton plc ('Wincanton' or the 'Group'), the leading European supply chain solutions provider, today announces the acquisition of the entire share capital of two privately-owned UK businesses. RDL Holdings Ltd ('RDL'), the UK market leader in the provision of supply chain services to the building products and construction industries, is being acquired for an initial debt-free consideration of approximately £22.0m. Up to a further £5.0m may be payable subject to the financial performance of RDL in the period to 31 December 2007. Lane plc ('Lane'), a market leader in the home delivery market, is being acquired for a consideration of up to £2.0m, plus the assumption of approximately £6m of debt. The acquisitions will be financed from Wincanton's existing committed banking facilities. In the twelve months to June 30th 2006, RDL reported, on a pro-forma basis, turnover of approximately £57.6m, EBIT of approximately £2.9m, and EBITDA of approximately £3.8m. Net assets at 30 June 2006 were approximately £4.5m. In the twelve months to 30 September 2006, Lane reported turnover of approximately £47m. Both companies operate in growing markets and benefit from strong existing customer portfolios. RDL has built an excellent reputation in the building products and construction markets and has established successful long-term relationships with leading businesses in these sectors. Its blue-chip customer portfolio includes such companies as Ibstock, Hanson, Lafarge, Brett Landscaping, H & H Celcon, Forticrete and Omya. RDL employs 350 people and gives national coverage from 200 vehicles on 38 sites across the UK. Supply chain services for the construction industry are growing but fragmented. Continuing growth is anticipated from sustained demand for housing new builds, commercial development and large-scale infrastructure projects. As the market leader, RDL is very well-positioned to benefit from the trend away from in-house operations and regional service providers as the major companies in the sector seek increased supply chain efficiency. Lane has expanded rapidly in recent years, its national home delivery network benefiting from the strong growth in internet shopping and multi-channel retailing. Supply chain services in this market are fast-growing but fragmented, and are believed to offer opportunity for both strong continuing growth and for the consolidation of the currently under-developed industry infrastructure. Lane's existing customers include Bosch, Electrolux, Homebase, and Magnet. Lane also offers warehousing and transport services to other organisations including The Body Shop and Aqualux. It employs some 750 people on 15 principal sites across the UK and operates a fleet of some 330 vehicles. Graeme McFaull, Wincanton's Chief Executive, commented: 'Wincanton has a strong track record of growing both organically and through acquisition. These two businesses enable us to build further on our leading presence in the UK, enter new sectors and expand our service offering. We see continuing opportunities for growth, both organically and through acquisition, across all our business areas, in both the UK and Continental Europe.' For further information please contact: Wincanton plc Graeme McFaull, Chief Executive 01249 710 000 Gerard Connell, Group Finance Director Buchanan Communications Charles Ryland / Jeremy Garcia 020 7466 5000 This information is provided by RNS The company news service from the London Stock Exchange

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Wincanton (WIN)
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