A MAJORITY stake in the Warrington-based Eddie Stobart truck business has been bought by a management team led by William Stobart – third son of the legendary founder of the business, Eddie Stobart.
But it will be “business as usual” with no redundancies or depot closures planned.
The £280 million deal is backed by Isle of Man investment manager DBay Capital.
William Stobart has left the Group board to become chief executive of Eddie Stobart Logistics, which becomes a private company.
He will continue to lead the business along with David Pickering and David Meir and the existing board.
Stobart Group has sold 51 per cent of Eddie Stobart Logistics for £195.6m cash and £44.1m in shares. Around £41.1m in debt has been taken on by the buyers.
The Group now plans to focus on its infrastructure and support services divisions but will retain the famous Eddie Stobart brand through a licence agreement and also the majority of the freehold properties used by the logistics division.
Andrew Tinkler, Stobart Group chief executive, said: “This is a further stage in delivering our strategy of creating and realising value for our shareholders. Moving forward, we are focused on capitalising on the opportunities in our infrastructure and support services divisions, enhanced by investment in Stobart Green Energy.”
William Stobart said: “I really welcome this investment from DBay and look forward to heading up the new partnership as chief executive. 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.”
Eddie Stobart Logistics generated earnings before interest and tax of £25.6m on revenues of £475.7m in the year ending February 28 2013.
Iain Ferguson, chairman of Stobart Group, 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.”
No redundancies are planned arising from the changes, nor any depot closures.
Stobart in management buy-out
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Gary Skentelbery
Experienced journalist for more than 40 years. Managing Director of magazine publishing group with three in-house titles and on-line daily newspaper for Warrington. Experienced writer, photographer, PR consultant and media expert having written for local, regional and national newspapers. Specialties: PR, media, social networking, photographer, networking, advertising, sales, media crisis management. Chair of Warrington Healthwatch Director Warrington Chamber of Commerce Patron Tim Parry Johnathan Ball Foundation for Peace. Trustee Warrington Disability Partnership. Former Chairman of Warrington Town FC.
