Wincanton nets £11m from Culina stake sale

Haulage firm Wincanton has sold its 20 per cent stake in Shropshire-based Culina Logistics in a deal worth £11 million, it has been revealed.

The firm, based in Chippenham, has sold its stake in the Market Drayton transport giant as part of an attempt to reduce debt levels through the disposal of non-core assets.

The investment in the firm initially came about after the Wincanton merged its chilled logistics activities with Culina in March 2009.

Wincanton chief executive Eric Born said today: "This is another important step in the reduction of our debt through the disposal of non-core investments, and allows us to focus our attention on delivering profitable growth in the UK & Ireland business in the future."

It is not known who the firm has sold its stake to.

The value of Wincanton's investment in Culina is £14.5 million, and the profit after tax on the company's investment to March 31, 2011 was £1.2 million, which will be put towards debt reduction.

Wincanton shares edged up half a penny in the wake of the news during early trading yesterday.

By the close of business yesterday, its shares had risen 1.2 per cent to 83p.

Wincanton announced last year that it was planning the disposal of its mainland European operations in line with a strategic objective of cutting debt.

The Wiltshire logistics group, which recorded a £75.5 million lass in the first half of 2011, last year re-financed its debt and sold its loss-making European operations to German company Rhenus.

A recent Wincanton interim management statement for the period from October 1 last year revealed it had been trading 'in line with expectations' and had secured contract wins from Asda, SuperGroup, Chevron, B&Q, Thames Water and Premier Foods.

Culina provides primarily chilled logistics solutions to the food and drink industry across the UK.

It employs more than 2,300 people at nine centres nationwide.

The Culina Group has four associated companies – Culina Logistics Limited, Culina Fresh Limited, Culina Logistics Ireland Limited and Culina IPS Contract Packing Limited.