Wincanton buys defense logistics company

Wincanton buys defense logistics company United Kingdom firm Wincanton plc has acquired Product Support Holdings Ltd. (PSHL), a provider of logistics solutions to defense and aerospace markets.
   Wincanton will pay an initial debt-free consideration of about '27 million ($53.3 million) with up to a further '3 million payable subject to the financial performance of PSHL in the period to March 31 2009. Wincanton will finance the deal with existing committed banking facilities.
   PSHL operates from 25 support centers, mostly in the United Kingdom, and employs 422 people. It’s core business lies in the management of time-critical spare parts and components. Key customers include AgustaWestland, BAE Systems and Honeywell.
   For the 12 months ended March 31 2008, PSHL reported pro-forma turnover of '19.4 million ($38.5 million), earnings before interest, tax, depreciation, and amortization (EBITDA) of '3.6 million ($7.1 million) and earnings before interest and tax (EBIT) of '3.4 million ($6.7 million). Net assets at the end of March stood at roughly '3.1 million ($6.1 million).
   “This acquisition will give a strong presence in the defense and aerospace logistics markets, further diversify the group’s blue-chip customer portfolio and expand Wincanton’s service offering to existing customers both in the U.K. and Mainland Europe,” Wincanton said in a statement.