Stobart to increase investment in Southend and Carlisle airports
The Transaction will position the Group to repay substantially all of its debt, accelerate the growth of the Continuing Group and buy back a proportion of its shares.
Stobart Group proposes to realise 51% of Eddie Stobart Logistics, the holding company of the parts of the Transport and Distribution Division being sold. The Transaction values the business being sold at approximately £280.8 million.
The third son of founder Eddie Stobart, William, will now head the spun-off Eddie Stobart Logistics.
The Stobart Group aims to focus on passenger growth at its London Southend and Carlisle Lake District airports, capitalising on demand for regional airport capacity in London and the South East and the UK as a whole.
It will promote Southend Airport (above) as Europe's fastest growing airport, securing new airline operators serving London and the South East, whilst using Aer Arann to provide new, untapped routes and bring passengers to London and the South East from the UK and Europe
Andrew Tinkler, CEO of Stobart 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 commented: "I really welcome this investment from DBAY and look forward to heading up the new partnership as CEO. 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."
Iain Ferguson, chairman of Stobart 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."
