Eddie Stobart estimates £550m-plus value post IPO29 March 2017 | Gareth Tredway
The company is targeting a market capitalisation on admission in excess of £550m.
CEO Alex Laffey said: “Eddie Stobart is widely recognised as a leading supply chain solutions provider and an IPO is an exciting next step for the business that will give us a strong platform for further growth.”
In the year ending November 30th 2016, the company generated revenue of £549m and adjusted earnings before interest and tax (Ebit) of £41m.
Parent company Greenwhitestar Holding Company (GHC; 51% owner) is expected to end up with no more than 30% of the company after the listing following a “significant sell down of shares”.
The other 49% shareholder, LSE-listed Stobart Group, the infrastructure and support services company, is also expected to sell down but said it wanted “to retain a meaningful stake in the company following its IPO, reflecting the two groups’ on-going shared interests and the company’s prospects”.
Stobart Group divested a 51% controlling share in the logistics business almost three years ago for almost £240m to GHC, led by then chief operating officer William Stobart and backed by asset management firm DBAY.
In the past few years, non-core operations have been disposed of and the company has focused on growing a balanced portfolio across core sectors, namely: e-commerce, manufacturing, industrial and bulk, retail and consumer.
While Eddie Stobart did sell its Stobart Automotive, UK vehicle carrier business to BCA in 2015, the company still offers a full range of vehicle logistics services in Europe.
The company said Stobart Automotive Europe moves over 300,000 vehicles each year across the network between manufacturers, storage sites and dealers.
“The UK and European logistics market is highly fragmented and offers Eddie Stobart strong opportunities for growth both organically and through bolt-on acquisitions,” said the company in the intention-to-list statement.