Comment / On the wires: Why K+N's 'CL' deal with XPO makes sense for both parties

If we slap onto these operations, the sales multiple (0.25x) that Wincanton (17,500 employees) – a good proxy valuation-wise – commands on the public markets, the divested UK contract logistics (“CL”; $809m in revenues) portfolio of K+N is worth just about Sfr190m ($205m).

However, given a number of considerations including the amount of cash spared from the original buyback programme by XPO Logistics, its gross cash balances as well as the performance of the target’s CL assets lately (the UK assets ...