French shipping giant CMA CGM SA agreed to buy UK logistics company Wincanton Plc, part of the billionaire Saade family’s buying spree to diversify its transport operations.
The world’s third-largest container line reached a deal that values Wincanton at about £566.9 million ($719 million) on a fully diluted basis, according to a statement Friday. The agreement is through CEVA Logistics, a subsidiary of Marseille-based CMA CGM.
Wincanton shares jumped 47% to 437 pence at 8:21 a.m. in London, below the offer price of 450 pence a share.
The acquisition is part of CEVA’s expansion in the UK that will give it expertise in the grocery and consumer sectors, according to the statement.
CMA CGM Chief Executive Officer Rodolphe Saade has expanded rapidly in recent years using unprecedented gains made during the pandemic, adding port handling and logistics capabilities as well as building up a stable of media assets.
The Wincanton deal follows a setback in air cargo, however, after the scrapping of a venture with Air France KLM earlier this week due to regulatory hurdles.
The Saade family is worth $24 billion, according to the Bloomberg Billionaires Index.
Record profits during the health crisis filled the coffers of the Saades and rival European shipping tycoons like Gianluigi Aponte, founder of Mediterranean Shipping Co., and Klaus-Michael Kuehne, who has stakes in logistics and shipping giants.
The sector has since been hit by a downturn as well as dangerous disruptions in the Red Sea.