Logistics company Wincanton is to merge its UK chilled operation with rival supply chain company Culina Logistics.

The move unites Wincanton’s Trafford Park and Gloucester operations with Culina’s nine-site distribution network, with Wincanton taking a 20% stake in the combined business.

The deal, which will go live from 28 March next year, creates a business with combined annual revenues of around £205m.

“The merger of Wincanton's chilled consolidation operations with Culina will create a UK leader in the sector, ensuring market-leading levels of service for our chilled consolidation customers,” said Wincanton chief executive Graeme McFaull.

“This is an attractive industry solution for Wincanton, allowing us to retain an equity share in the enlarged business and in the profit improvement opportunities that we expect to be delivered.”