Eddie Stobart motors ahead with £550m flotation plan

Eddie Stobart has announced plans to float on the London Stock Exchange in a listing that would value the logistics group at over £550 million.

Eddie Stobart is set to float on the London market next month. Picture: Contributed

The company, known for its branded lorries, expects to raise about £130m from the initial public offering (IPO) next month, with the cash used to fund growth and pay down debt.

• READ MORE: Eddie Stobart drives off in £280m deal

The listing, on London’s Alternative Investment Market, will see Eddie Stobart’s majority owners, including a group of funds advised by DBAY, reduce their stake in the company from 51 per cent to 30 per cent. Stobart Group will maintain a 49 per cent holding in the firm.

Chief executive Alex Laffey said: “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.”

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The group, established in 1970 and which operates an extensive UK and European network, generated revenue of £549m and adjusted earnings of £41m last year.

Eddie Stobart said with the UK and European logistics market “highly fragmented”, it offers the firm a wide variety of opportunities for growth.

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