The boards of directors of GXO Logistics and Clipper Logistics plc agreed this week to a cash and share acquisition of Clipper by GXO, worth approximately $1.3 billion.
Greenwich, Conn.-based GXO has offered 920 pence per share (approximately $1.25) for UK-based Clipper—690 pence per share in cash and the remainder in GXO stock. If approved, the deal is expected to be completed this summer, according to a GXO spokesperson. The announcement comes just months after GXO began trading on the New York Stock Exchange.
Based in Leeds, Clipper Logistics serves retailers across the United Kingdom and Europe. GXO leaders said the deal will strengthen GXO’s returns and repairs capabilities, expand its e-commerce customer base, and bolster its presence in key growth areas, including Germany and Poland, as well as the life sciences industry. They said it will also accelerate the expansion of the company’s GXO Direct distribution network to Europe.
“We believe our very strong cultural fit, deep familiarity with local industry dynamics and commitment to invest and grow in highly attractive markets will enable a seamless integration,” GXO’s CEO Malcolm Wilson said in a press release Monday. “On behalf of our more than 100,000 GXO team members, including 33,000 in the UK, I look forward to welcoming Clipper’s talented people to our organization. We’re very excited about the tremendous possibilities ahead.”