News

Wincanton has tightened its grip on the container transport sector with acquisition of Woodbridge, Suffolk firm CEL Group.

Wincanton gained a sizeable toe-hold in the sector earlier this year when it bought Hanbury Davies, but the latest acquisition gives the logistics giant a 15% share of the market.

CEL was the  second largest privately owned container transport firm after fellow Suffolk operator Maritime Transport and it was widely known in the industry that its owners – the Carter family – were looking to sell up.

It has three trading arms – CEL (Logistics), W Carter (Haulage), and CEL (Engineering) – and employs 470 people and operates a fleet of 370 vehicles.

Wincanton says the £19.5m deal will offer synergies with its existing business.

Jeff Anderson, managing director, Wincanton, says: “This considerable strengthening of our container activities in the UK complements our market leading intermodal business in mainland Europe and demonstrates our future commitment to the container industry and our customers.”

Shaun Allen, Managing Director, CEL, comments: “We are delighted to be joining Wincanton with the ongoing stability and investment this  brings to our business.”

Anderson adds that the deal takes the business into first place in the container market with a combined turnover of £120m-£125m.

He says that following the acquisition earlier this year of Hanbury Davies, the firm wanted to expand further in the sector, despite current poor volumes: “Although the market is flat at the moment and going through a recessionary time, businesses like this don’t come up for sale very often and it’s a good long-term plan.

“[CEL] has good customer service and is a very good strategic fit in a sector that we are interested in – we want to grow [our container business].”

Although CEL was rumoured to be the initial target prior to Wincanton’s swoop on Hanbury Davies, Anderson denies that.

He says the principal saving in the integrated business will come from reduced property costs – the two companies operate in several duplicate locations – and better utilisation of the 750 vehicle fleet.

However, Anderson stresses that driver levels will be maintained and says that it is too early in the integration process to talk about any potential back-office redundancies.

CEL also boasts a similar inland container storage operation to Wincanton at Alconbury. Anderson says the firm will look to fill any spare capacity at the combined operation, plus expand the concept: “I can certainly see us replicating that elsewhere in the market place,” he adds.

Deben Transport

Another container haulier with new ownership this week is Deben Transport. Previously part-owned by CEL Group, the firm has bought its shares back. MD Paul Dawson has increased its shareholding along with Derek Johnson, the boss of liner shipping agency Johnson Stevens Agencies.

Deben has also taken on former CEL director Ivan Chittock as its financial director.