Wincanton supply chain services to UK construction

Wincanton plc establishes leadership in supply chain services to UK construction industry.

Wincanton plc ('Wincanton' or the 'Group'), the leading European supply chain solutions provider, today announces the acquisition of the entire share capital of RDL Holdings ('RDL'), a privately owned business, for an initial debt-free consideration of £22.0m.

A further £5.0m may be payable subject to the financial performance of RDL in the period to 31 December 2007.

The acquisition, which will be financed in cash from Wincanton's existing facilities, further strengthens the Group's position in the UK market.

RDL is the UK market leader in the provision of supply chain services to the building products and construction industries.

It has built an excellent reputation in these markets and has established successful long-term relationships with leading businesses in the sector.

RDL's strong customer portfolio includes such companies as Ibstock, Hanson, Lafarge, Brett Landscaping, HandH Celcon, Forticrete and Omya.

RDL employs 350 people and has 200 vehicles on 38 sites across the UK that give it national coverage.

Supply chain services for the construction industry are growing but fragmented and predominantly driven by increasing demand for new build housing, commercial development and large scale infrastructure projects.

RDL is well positioned to benefit from the trend away from in-house operations and regional providers as the major companies in the sector seek increased supply chain efficiency.

Graeme McFaull, Wincanton's Chief Executive, commented: "The acquisition of RDL is another exciting development for the Group".

"It establishes a leading position for Wincanton in the growing construction logistics sector, building significantly on our existing customer operations in this market and bringing attractive opportunities for further growth".

"We expect to make further infill acquisitions to continue to enable Wincanton to reinforce our geographic presence, enter new sectors and expand our service offering.".

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