Eddie Stobart Name Retained as Truck Business changes Hands.
The Stobart group Board of directors have announced that they are going to sell the majority steak of its road haulage business, Eddie Stobart Logistics, to holding company Advisors, in a deal worth approx. £280 million. The result of this transaction will leave Stobart with 49% of Eddie Stobart Logistics but crucially, able to reduce its debt.
Chairman of Stobart, Iain Ferguson, 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 Groups businesses together in a coherent, medium-term value creation plan".
The group has undergone major changes since the company’s distinctive and personalised trucks helped to make the brand the best recognised of British Hauliers. When the trucking group joined up with the Westbury property group the direction switched to include rail freight interests and airport ownership, with Southend Airport quickly becoming a model for the revival of local airports.
The Stobart name has been associated with legal services after the controversial privatisation of legal aid proposals were put forward. After continuing to expand the haulage side with acquisitions such as that of James Irlam in 2008 the diversion into other areas after the agreement with Westbury seems now to have reached a tipping point.