Stobart announces plans to sell majority stake in logistics company

March 14, 2014

Stobart Group’s transportation and distribution business is to be floated as a private company called Eddie Stobart Logistics after it sold 51 percent of its stake.

The majority share was bought by funds managed by DBAY, an asset management firm based in the Isle of Man. Eddie Stobart Logistics will still retain its family heritage, with William Stobart becoming CEO of the company. 

He said that he welcomed the investment and looks forward to his new role, adding, “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.”

The group says that the plans its established with DBAY should maximise value for shareholders over the next four years. DBAY has previously participated in the acquisition of TDG in 2008 and its sale to Norbert Dentressangle.

For the year ending February 2013 Eddie Stobart Logistics generated earnings before tax of £25.6 million revenue on £475.7 million, making this deal value the business at £280.8 million.

The group as a whole will now be focused on its infrastructure and support service operations. It plans on using the cash from the disposal to repay a £100 million loan from M&G, fund a £35 million share buyback, and also provide £55 million in funding for Stobart Green Energy.

Andrew Tinkler, CEO of Stobart said: “This is a further stage in delivering our strategy of creating and realising value for our shareholders.”