Eddie Stobart Logistics sells to IOM Company
10th March, 2014
Motorway stalwart Stobart Group is to sell a controlling interest in its iconic trucking business to the Isle of Man firm DouglasBay Capital Advisors Limited (DBAY), a regulated investment manager based in Athol Street, Douglas 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.