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Eddie Stobart Logistics Acquires Brands
Friday 22 May 2020

UK-based Eddie Stobart Logistics plc (ESL: AIM), a cash shell which holds a 49% equity interest in the trading entities of Eddie Stobart, a UK end-to-end supply chain, transport and logistics group, has been notified that Eddie Stobart Group has acquired the "Eddie Stobart" and "Stobart" brands from a subsidiary of Stobart Group Ltd. (STOB: LSE), the main market listed aviation and energy group, the group said.

The company has been notified that as part of this transaction a total cash consideration of GBP 10m is payable by the Eddie Stobart Group trading entity, Eddie Stobart Ltd., of which GBP 4m is deferred (with GBP 2.5m payable in December 2020 and the remaining GBP 1.5m within 36 months), and will be funded from existing cash.

Also, Stobart Group Ltd. is required to change its name by 28 February 2021.

Prior to acquiring the Eddie Stobart brand, the Eddie Stobart Group used the brand under a 2014 licence agreement and an annual fee of GBP 3 m had become payable from 1 March 2020.

This licence arrangement has now been terminated resulting in a cost saving for the Eddie Stobart Group of GBP 3m per annum.

The acquisition of the brand will help stakeholders more easily to differentiate between the Eddie Stobart Group's logistics business and the Stobart Group's aviation and energy businesses, as the Stobart Group will transition to a different name.

The company has also been notified by the Eddie Stobart Group of the following trading update for the period since end November 2019.

The team continues to closely monitor the impact of Coronavirus (COVID-19) on trading. While there have been some volume reductions in parts of the business, the Eddie Stobart Group has benefited from its traditional strong exposure to fast-moving consumer and grocery goods, as well as its e-commerce related activities and volumes in these areas remain strong.
Date Published: 22/05/2020