Listen to this article
Logistics company Eddie Stobart, owner of some of the most recognisable lorries on British motorways, has announced plans to raise around £130m by listing on London’s junior AIM market, three years after it was split off from the larger Stobart Group.
The company, which is currently majority owned by a group of funds advised by Manx investment group DBay, with the Stobart Group maintaining a 49 per cent stake, expects to achieve a valuation “in excess” of £550m. The existing owners will hold no more than 30 per cent of the company after the IPO, which is expected to take place next month.
The company said it will use the proceeds to pay down existing debts, fund future growth and complete a bolt-on acquisition to strengthen its activities in the e-commerce sector.
Eddie Stobart said it has “a strong track record of growth, with robust margins and good cash generation”. The company generated revenues of £549m in the year to November 30, and adjusted earning before interest and tax of £41m.
The company said it has gone through a “transformational period” since being split off from the Stobart Group in 2014, which has included investing in technology, disposing of non-core operations and working to improve its resilience with a more balanced portfolio of businesses.
It said it plans to pay a dividend in 2017, and sees opportunities for further growth, including through bolt-on acquisitions, in the “highly fragmented” UK and European logistics market.
Alex Laffey, Eddie Stobart chief executive, said:
Eddie Stobart is widely recognised as a leading supply chain solutions provider and an IPO is an exciting next step for the business that will give us a strong platform for further growth.
We have transformed the business over the last three years and made significant investment in our customised technology and systems alongside developing our management and workforce to support growth in new business sectors.