Wincanton snaps up logistics firm Cygnia in £24m deal and addresses driver shortage issues
In a move that will help Wincanton boost its digital and efulfilment division, the company said it will buy the shares in the holding firm of Cygnia Logistics from Crescent Capital.
Wincanton, which provides transport and distribution services, gave the update as it warned it is not immune to industry headwinds.
Wincanton said: “The widely-reported issue of driver shortages continues to have an impact on business operations and the group is taking a number of steps to attract and retain drivers, including extending its dedicated driver recruitment function and in-house driver training department and funding the cost of training for new applicants.”
It added that it is working closely with customers to address the challenges and is making representations to government with regard to measures that would increase the pool of drivers.
Cygnia, which Wincanton is buying, employs around 700 people and operates from four UK sites. It works with a number of businesses, helping with returns and transport, and recorded sales of £44.6 million in the year to March.
James Wroath, chief executive of Wincanton, said: “The transaction is perfectly aligned with our strategy to capitalise on the opportunities presented by the shift to online retail, and will position us well to benefit from many of the changes we are seeing in the broader logistics sector.”
Numerous logistics firms saw high demand from customers during the pandemic, and today Wincanton said year to date core revenue is 25% higher than a year earlier.
