Business
Brand Acquisition and Trading Update
Brand Acquisition and Trading Update.
About this update from Logistics Development Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 5471N\n Eddie Stobart Logistics PLC\n 21 May 2020\n \n \n \n \n 21 May 2020\n \n \n \n \n \n Eddie Stobart Logistics plc\n \n \n (the \"Company\")\n \n \n \n \n \n Eddie Stobart Group - brand acquisition and trading update\n \n \n \n \n \n Eddie Stobart Logistics plc (ESL:AIM), the AIM-quoted cash shell which holds a 49% equity interest in the trading entities of Eddie Stobart (\"Eddie Stobart Group\"), a leading UK end-to-end supply chain, transport and logistics group, has been notified that Eddie Stobart Group has acquired the \"Eddie Stobart\" and \"Stobart\" brands from a subsidiary of Stobart Group Limited (STOB:LSE), the main market listed aviation and energy group\n \n \n \n \n \n The Company has been notified that as part of this transaction: \n \n \n · \n a total cash consideration of £10 million is payable by the Eddie Stobart Group trading entity, Eddie Stobart Limited, of which £4 million is deferred (with £2.5 million payable in December 2020 and the remaining £1.5 million within 36 months), and will be funded from existing cash; and\n \n \n · \n Stobart Group Limited is required to change its name by 28 February 2021.\n \n \n \n \n \n Prior to acquiring the Eddie Stobart brand, the Eddie Stobart Group used the brand under a 2014 licence agreement and an annual fee of £3 million had become payable from 1 March 2020. This licence arrangement has now been terminated resulting in a cost saving for the Eddie Stobart Group of £3 million per annum. The acquisition of the brand will help stakeholders more easily to differentiate between the Eddie Stobart Group's logistics business and the Stobart Group's aviation and energy businesses, as the Stobart Group will transition to a different name.\n \n \n \n \n \n Eddie Stobart Group trading update\n \n \n \n \n \n The Company has also been notified by the Eddie Stobart Group of the following trading update for the period since end November 2019. \n \n \n \n \n \n \"Following the acquisition by funds managed by DBAY Advisors (\"DBAY\") of a 51% equity interest in the Eddie Stobart Group, the management team led by Executive Chairman William Stobart has implemented measures to reorganise and streamline the operations and increase utilisation in the property portfolio, which are ex...