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Eddie Stobart buying back eponymous brands
Posted on Friday, 22 May 2020 10:27
London Aim-listed road haulage company Eddie Stobart Logistics has acquired the Eddie Stobart and Stobart brands names from Stobart Group Ltd.
The company carried out the transaction via its Eddie Stobart Group subsidiary, in which it owns a 49.0 per cent shareholding.
Under the terms of the deal, the buyer will pay GBP 10.00 million in cash for the business, GBP 4.00 million of which will be deferred.
That component will be due in two instalments; GBP 2.50 million will be due in December of this year, with GBP 1.50 million payable within 36 months.
The Eddie Stobart Group had previously licensed its eponymous brand for GBP 3.00 million per year, an amount which will now be saved following the transaction’s completion.
It believes it will now be easier to differentiate between its logistics unit and its aviation and energy units, while it will also be able to grow brand awareness throughout the UK and Europe.
In a statement, the firm said: "Following the acquisition by funds managed by DBAY Advisors ("DBAY") of a 51% equity interest in the Eddie Stobart Group, the management team led by Executive Chairman William Stobart has implemented measures to reorganise and streamline the operations and increase utilisation in the property portfolio, which are expected to positively impact the full year results to November 2020.
Eddie Stobart said it has not suffered as badly as many other companies in the wake of the global coronavirus crisis, which has resulted in restrictions being placed on travel and business, as a result of its existing operations in the consumer and grocery goods segments.
It added that the financing it received from DBAY in December has ensured it is well-funded.
Zephyr, the M&A database published by Bureau van Dijk, shows there were 399 deals worth a combined USD 14.47 billion targeting freight transportation arrangement companies announced worldwide during 2019, compared to 2018’s 428 at USD 11.79 billion.
© Zephus Ltd