News

Wincanton's purchase of RDL not only makes it a big force in transporting building materials - it highlights the importance these days of flexible transport. Nick Graham, who is taking over the RDL operation and managing its integration into Wincanton, says: "We will learn a lot from RDL. The managers are very well motivated and very well targeted on backloading. "We are aware that customers (in many sectors) are calling for flexible solutions," he says. Graham was running Wincanton's  petroleum, lubes and re-cycling unit (now headed by David Jones, formerly with P&O). RDL brings 200 of its own trucks at 38 sites, 100 with franchised drivers and 3-400 trucks run by sub-contractors. Since the buyout from Lafarge seven years ago, it has spread its customer base across the industry and trucks often work for more than customer in a day.

Wincanton aims to expand this transport operation and to offer customers a new service: construction supply chain overview. It is already in talks with Transport for London and regional authorities and believes the hands-on expertise will give it added credibility. "Competition is not nearly so strong in this sector (as in others)," Graham says. The says the takeover is almost "too good to be true", taking Wincanton straight to number one in the construction sector. Unlike petroleum, it offers the chance for steady growth. RDL's sellers, joint MDs Kevin Hornsby and Dennis Smith, chose Wincanton from a number of trade and private  equity would-be buyers. The new owner is best for the business and the people working in it, Hornsby says. He and Smith are now looking at development opportunities, which he says could include own-account fleets.

Both men are nearing 60 and decided to sell early this year. Talks with Wincanton started in May. *Wincanton revealed some of the terms under which it bought Lane plc, the home delivery specialist, two weeks ago. The purchase consideration was "up to £2m, plus the assumption of approximately £6m of debt". Lane's turnover was £47m in the year ended September 30 2006, it told the stock market this week.