Stobart acquires Innovate chilled goods operations

Source: Supply Chain Digital

Date :02/07/2008 08:58:22

Stobart Group Ltd has acquired the chilled and ambient goods operations of Innovate Logistics Ltd from its administrators BDO Stoy Hayward, in an effort to broaden its chilled distribution operations in the UK.

“This is a low risk way of increasing our presence in the chilled market, giving our customers more choice and flexibility. It is entirely in-line with our strategy of building the Group,” Andrew Tinkler, Chief Executive of Stobart Group, said.

Innovate contracts

Under the terms of the acquisition, announced Tuesday July 1, the Cumbria-based transport company will take on a number of Innovate Logistics contracts, including a warehousing operation with Nestle.

The Innovate operations are expected to generate turnover of around £100million a year and to be earnings enhancing in the first full year of ownership, Stobart said in a statement.

It also expects to transfer around 1,300 existing employees of Innovate Logistics to Stobart.

Group

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 statement continued.

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.