Partner Article

Stobart sell 51% of logistics business

Stobart Group has sold 51% of its Eddie Stobart Logistics division to Willian Stobart and investors DBAY in a deal worth £280 million.

Cash from the sale will be used to fund investment in Stobart Green Energy; stage a share buyback of up to £35 million of the company’s ordinary shares over the next year, and repay Group debts.

The Cumbria-based firm saw EBIT of £25.6 million from the Eddie Stobart Logistics operation, in the year ended February 28 2013.

William Stobart said: “I really welcome this investment from DBAY and look forward to heading up the new partnership as CEO. DBAY have a strong track record of working with existing management teams within businesses, as they will do with us, to help drive growth.

“We already have an extremely loyal customer base who we look forward to continuing to work with. It is an exciting time for us to grow this business and I am looking forward to this next stage and the opportunities that it will bring for our employees and customers.”

Iain Ferguson, chairman of Stobart said: “This transaction represents an important step in the realisation of value for Shareholders.

“We have found a strong partner to take Eddie Stobart Logistics to the next stage of its development, increasing the scope of the powerful ‘Eddie Stobart’ brand and allowing the Group to focus on its Infrastructure and Support Services Divisions.

“These proposals allow us to repay debt, make a return of capital to shareholders, stimulate the growth of our Biomass business and bring the Group’s businesses together in a coherent, medium-term value creation plan.”

This was posted in Bdaily's Members' News section by Tom Keighley .