Eddie Stobart name and Stobart brands sold in £10m deal
Stobart Group, the Carlisle-based aviation and energy group, said its wholly owned subsidiary Stobart Group Brands, has sold the Eddie Stobart and Stobart trademarks and designs to Eddie Stobart Logistics for a total consideration of £10m.
Stobart Group Brands owns the Eddie Stobart and Stobart Group brands and all associated intellectual rights.
In February 2014, Stobart Brands entered into an agreement to licence the Eddie Stobart Brand to Eddie Stobart Logistics for a £13.7m premium fee as part of the initial partial sale of the Eddie Stobart business.
But the group said today that the sale of the Eddie Stobart and Stobart brands now will result in an immediate cash receipt and will also have the effect of helping investors and stakeholders to more easily differentiate between Eddie Stobart’s logistics business and Stobart Group’s aviation and energy businesses through Stobart Group transitioning to a different name.
Warwick Brady, Stobart Group chief executive, said: “Stobart Group is proud of the brand it has built over many years. It is an iconic and highly recognisable name, associated with great customer service.
“However, the brand is primarily associated with the highly visible Eddie Stobart lorries. This has often created confusion for investors and other stakeholders between the Eddie Stobart Logistics business operations and Stobart Group’s focus on developing a valuable London airport and a high margin energy business.
“By selling the brand now we can realise value for our shareholders and differentiate our businesses, establishing a new name that reflects our future in aviation and energy.”
Last December, Warrington-based Eddie Stobart was acquired by majority shareholder DBay, which put together a rescue package involving a £50m fillip for the firm.
William Stobart, executive chairman of Eddie Stobart Group, said today: “The Eddie Stobart brand is an iconic name, linked to our core values, that should be part of the business.
“The acquisition will also deliver significant future cost savings and it will allow us to continue to grow brand awareness throughout the UK and Europe.”
Mike Murphy, partner, and Katy Oakes, associate, in Hill Dickinson’s corporate team, together with Megan Bentham, senior associate in the firm’s commercial, TMT and IP team, advised Stobart Group on the deal.