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Wincanton keeps building with RDL purchase
Page 7
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FAST-EXPANDING Wincanton has made its second major acquisition in two weeks and promises that more will follow as part of its strategy to enter new sectors.
The £22m purchase of construction supply-chain specialist RDL Holdings follows hot on the heels_ of Wincanton's acquisi don of Lane Group (CM 12 October).
Lane Group gives Wincanton strength in the home-delivery market; RDL establishes it in the growing construction logistics sector.
Until now Wincanton only had a small presence in this sector — but RD Ls customer portfolio includes well-known names such as Ibstock, llanson and Lafarge.
Nick Grahain,business unit director at Wincanton, says that a couple of years ago Wincanton's industrial business sector started identifying potential growth markets to enter. The water, plumbing and heating sectors were all considered but construction came out ahead.
"Forecasts show there could be 10-16% growth in the construction sector by 2009,"he adds.Wincanton believes RDL will benefit from a trend in construction away from in-house operations and regional providers towards larger national supply chains to boost efficiency. Graham says there will be no redundancies as a result of the move and the two joint MDs of
RDL will remain in place to help identify growth opportunities. RDL employs 350 people and has 200 vehicles at 38 sites across the UK. It runs a core fleet of vehicles and uses subcontractors. The company underwent a management buyout in 1990 and since then has shown -strong, steady growth",
says Graham. The purchase of RDL Iloklings will not be Wincanton's last acquisition, according to chief executive Graeme McFaull: "We expect to make further infill acquisitions to con
tinue to enable Wincanton to reinforce its geographic presence, enter new sectors and expand its service offering."
Wincanton paid .£22m for RDL. but has pledged to boost this by another f...5m depending on RDL's financial performance to the end of 2007.