Supply chain

The directors of British logistics and contract packing firm TDG have agreed a multimillion pound sale to offshore investment group Laxey Partners, following last month's failed deal with Wincanton.

Isle of Man-based Laxey has formed a new company called Bidco and has agreed to pay 250p cash for each TDG share, 25p a share less than it offered in its original bid in February. News of the deal sent TDG's share price up nearly 9% to 243p.

Laxey, which already owns about 22% of TDG, said that it plans to develop TDG's property portfolio, which currently comprises 133 warehouses and distribution sites across Europe.

Charles Mackay, TDG's chairman, said: "Today's announcement brings to a close a lengthy process during which we have evaluated all aspects of the proposals from Laxey, as well as running a process to determine other potential interests.

"The independent directors have concluded that the cash offer proposed by Laxey is in the best interests of TDG's shareholders as a whole and recommend that TDG shareholders vote in favour of the resolutions to be proposed at the meetings."

Alex Paiusco, Bidco's director, said: "We are excited about the prospect of working with TDG, its management team and employees in the next stage of development for one of the largest logistics businesses in Europe.

"The company has a strong customer base, which we value highly, and we will continue to support the company in expanding the range of services it provides."

Bidco has been formed by Laxey as a private equity firm that will specialise in investing in small, undervalued companies.

Previous suitor Wincanton today (4 July) issued a statement reaffirming that it has no intention to make an offer for TDG following its withdrawal from a deal on 17 June.

TDG reported a pre-tax profit of £15.8m in 2007. It employs 7,000 staff in the UK, Ireland, Germany, Spain, Holland and Belgium.