Wincanton offloads Pullman Fleet Services - UPDATED05 November 2020

Third-party logistics firm Wincanton has agreed to sell its UK commercial vehicle repair and maintenance company subsidiary Wincanton Pullman Fleet Services Limited to asset management firm Aurelius Investments.

PFS, which claims to be the UK’s largest independent provider of commercial vehicle repair and maintenance, operates 27 service centres, employs 250 trained technicians and operates 150 service vans. It claims to manage 35,000 pieces of equipment.

The sale of PFS follows its plans to sell its containers operation. The company says that the disposal is aligned with the group’s strategy of ‘focusing on growth opportunities in its core markets’. It elaborates: “The nature of the market in which PFS operates is such that its contracts are smaller and carry demand risk, meaning it is not aligned with Wincanton’s core business model. As with Containers, PFS would require further investment in the near term, and the sale allows Wincanton to focus on investing in areas offering higher returns.”

Now, Wincanton is structured around its four core markets: digital & e-fulfilment, grocery & consumer, general merchandise and public & industrial.

The company reports that it will receive a ‘nominal’ consideration for the sale of PFS. The transaction will reduce the group’s annual revenue by approximately £30m but lead to a small benefit in the group’s underlying profit before tax.

James Wroath, chief executive officer of Wincanton, said: “Wincanton has set out a clear strategy for achieving profitable growth and we have focused our teams and our investments towards those markets where we see the highest potential. Our recent disposals of PFS and our containers operations, and subsequent exit from the Specialist Services sector, is clear evidence of our commitment to deliver this strategy.”

Aurelius said that it will capitalise on Pullman's position as "the only multi-marque operator of scale for HGVs in the UK, welcoming the business into a portfolio that includes Rivus Fleet Solutions, formerly BT Fleet Solutions, and deploying in-house operational expertise to maximise the commercial potential."

It added that Pullman reported revenues of £44 million in 2019/2020.

UPDATED 6 November 2020 9:10 am to add Aurelius quotations.

Transport Engineer

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