Trucking firm Wincanton PLC (LSE:WIN, OTC:WNCNF) looks set to bow out of the public markets after backing a bid from the French giant Ceva Logistics that values it at £567 million.
Investors will receive 450p a share, a 52% premium to Thursday's close. However, this equates to an EBITDA multiple of 6.8 times, implying Ceva isn't exactly overpaying.
Indeed, the deal possibly reflects a wider malaise across the stock market, where mid- and small-cap valuations (anything below a £1bn market capitalisation) are in bargain basement territory amid tepid interest in this segment of the markets.
This lack of recognition might explain the comments of Wincanton chairman Sir Martin Read: "While we remain confident in the long-term prospects of Wincanton and the wider sector, we recognise that the strong performance of the company has not been reflected in the performance of its shares in recent years.
"We therefore believe this offer represents the best opportunity for shareholders to realise the value of their investment with greater certainty."
Wincanton's exit from the equity market is part of a sustained trend over the past two years, which has seen businesses frustrated by their lowly valuations, opt for a life away from the public markets.