Stobart Group sells stake in its truck brand to focus on biomass energy and Southend Airport
Stobart Group is to sell a controlling interest in its trucking business to the Isle of Man investment firm DBAY in a £280million deal. Stobart Group will sell a majority stake in Eddie Stobart Logistics to focus on biomass energy and expanding Southend Airport. Stobart will get £195.6million in cash from DBAY, as well as a 49% stake in the new company. William Stobart will head the new business and will own 6% of it. Markets gave the deal the thumbs down, sending shares down 7.75p to 141.75p. The sale includes a complex arrangement under which DBAY can use the Eddie Stobart brand for 4 years without paying. Then it can either buy the brand for use only in transport and logistics for £15million, pay £50million to use the brand however it wishes, or can pay £3million a year to license it. Stobart believes the trucking business has little room for growth and is selling it to focus on fast-growing Southend Airport and get into biomass generation. It believes the airport can increase passengers from 1 million a year to 5 million without much more investment.
Stobart Group sells stake in its iconic truck brand to focus on biomass energy and Southend Airport
By ROB DAVIES (This is Money)
6 March 2014
Motorway stalwart Stobart Group is to sell a controlling interest in its iconic trucking business to the Isle of Man investment firm DBAY in a £280million deal.
The group, whose green lorries are a familiar sight on Britain’s roads, said it would sell a majority stake in Eddie Stobart Logistics to focus on biomass energy and expanding Southend Airport.
Stobart will get £195.6million in cash from DBAY, as well as a 49 per cent stake in the new company, with the buyer taking on £41million of debt.
Chief operating officer William Stobart, son of founder Eddie, is leaving to head up the new business and will own 6 per cent of it. Markets gave the deal the thumbs down, sending shares down 7.75p to 141.75p.
The sale includes a complex arrangement under which DBAY can use the Eddie Stobart brand for four years without paying.
After that, it can either buy the brand for use only in transport and logistics for £15million, pay £50million to use the brand however it wishes, or can pay £3million a year to license it.
Stobart believes the trucking business has little room for growth and is selling it to focus on fast-growing Southend Airport and get into biomass generation.
At present, Stobart sources and delivers biomass, but it is planning a joint venture with an unnamed partner to invest in biomass power plants.
It also believes Southend Airport is ripe for growth, with capacity to increase passenger numbers from 1million a year to 5million without much more investment.
Terminal Passengers at Southend airport:
UK Airport Statistics: 2012 – annual (Table 10.3) Terminal Passengers 2002 – 2012
from Stansted. The more recent decline reflects the fact that this company no
longer operates and Ford uses commercial flights to ferry its personnel between
its UK and German locations.
Air Transport Movements
UK Airport Statistics: 2012 – annual (Table 4.2) ATMs 2002 – 2012
2010 – link to 2010 data
2000 874 (CAA figures)
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