Wednesday 02.07.2008

Stobart Group Acquires Chilled Goods Operations

Law firm Halliwells has advised Stobart Group, one of the UK's leading providers of multimodal transport and logistics services, on the acquisition of the chilled and ambient goods operations of Innovate Logistics Limited (the 'Innovate Operations') from its administrators BDO Stoy Hayward.

The corporate team at Halliwells was led by partner and Liverpool office head, Jonathan Brown.

This transaction significantly broadens Stobart's chilled distribution operations in the UK. It will further enhance its specialist fleet capabilities and extend the range of services it offers customers.

It is expected that around 1,300 existing employees of Innovate Logistics Limited will transfer to Stobart. The Group will license 280 tractor units, 350 trailers and the associated warehousing from the administrators for an initial six month period in order to service the contracts with the option of assuming the leases thereafter.

The enlarged Group will now have more than 1,800 trucks, 3,200 trailers and will employ over 5,300 people in 40 locations across the UK, Ireland and Europe.

The Innovate Operations have minimal accounting book value, and any working capital funding requirements for this transaction will be met from existing resources and new bank facilities. The Innovate Operations are expected to generate turnover of around £100 million per annum and the acquisition is expected to enhance earnings in the first full year.

Commenting on Halliwells' involvement in the acquisition, Jonathan Brown said:
"We have a dedicated team drawn from a number of legal disciplines that specializes in buying businesses from Administrators. We are very pleased that we were able to deliver that specialist offering so successfully and play a part in safe guarding 1300 jobs."

About Halliwells

Halliwells is one of the UK's leading multi-disciplinary law firms with over 1000 people and offices in Manchester, Liverpool, London and Sheffield



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