Stobart Group Limited Sale of Eddie Stobart and Stobart brands (5457N)
21 Maggio 2020 - 8:00AM
UK Regulatory
TIDMSTOB
RNS Number : 5457N
Stobart Group Limited
21 May 2020
21 May 2020
STOBART GROUP LIMITED
('Stobart Group' or 'the Company')
Sale of Eddie Stobart and Stobart brands
Stobart Group, the aviation and energy group, announces that its
wholly owned subsidiary Stobart Group Brands LLP has sold the Eddie
Stobart and Stobart trademarks and designs ("brands") to Eddie
Stobart Logistics for a total consideration of GBP10 million (the
"Transaction").
Stobart Group Limited will put forward a resolution at a general
meeting of shareholders to change its corporate name prior to 28
February 2021.
Stobart Group Brands LLP ("Stobart Brands") owns the Eddie
Stobart and Stobart Group brands and all associated intellectual
rights. In February 2014, Stobart Brands entered into an agreement
to licence the Eddie Stobart Brand to Eddie Stobart Logistics in
consideration of a GBP13.7 million premium fee as part of the
initial partial sale of the Eddie Stobart business. That 15-year
licence agreement provided the first six years to 29 February 2020
royalty free.
Post 1 March 2020, a licence fee of GBP3 million per annum
became payable until February 2029. However, that agreement was
terminable by Eddie Stobart Logistics on six months' written
notice. The annual licence fee was also conditional on Eddie
Stobart Logistics achieving certain performance targets. If Eddie
Stobart Logistics did not achieve these performance targets in any
given year, the GBP3 million licence fee was to accrue and only
become payable at subsequent dates once these performance targets
had been achieved.
The sale of the Eddie Stobart and Stobart brands now will result
in an immediate cash receipt. It will also have the effect of
helping investors and stakeholders to more easily differentiate
between Eddie Stobart's logistics business and Stobart Group's
aviation and energy businesses through Stobart Group transitioning
to a different name.
Terms of the transaction
Stobart Brands has sold the Eddie Stobart and Stobart brands to
Eddie Stobart Logistics for a total cash consideration of GBP10
million to be paid as follows;
(i) GBP6 million to be paid upon Completion of the transaction;
(ii) GBP2.5 million to be paid on or before 1 December 2020; and
(iii) GBP1.5 million to be paid 36 months after the completion of the sale.
The Transaction constitutes a Class 2 transaction for the
purposes of the Financial Conduct Authority's Listing Rules.
The value of the gross assets of the Stobart Brands as at 31
August 2019 was GBP34 million. The profits before tax for Stobart
Brands for the year ended 29 February 2019 was GBPNil. The cash
consideration will be used for general working capital purposes.
The fair value of the brand in the consolidated statement of the
financial position at 29 February 2020 will be GBP10 million,
reflecting the cash consideration receivable.
Stobart Group will change its name prior to February 2021.
However, there are a number of Stobart divisions that will continue
to use the brand for up to 36 months after completion and this will
be licenced on a royalty free basis from Eddie Stobart
Logistics.
Warwick Brady, CEO of Stobart Group, said:
"Stobart Group is proud of the brand it has built over many
years. It is an iconic and highly recognisable name, associated
with great customer service.
"However, the brand is primarily associated with the highly
visible Eddie Stobart lorries. This has often created confusion for
investors and other stakeholders between the Eddie Stobart
Logistics business operations and Stobart Group's focus on
developing a valuable London airport and a high margin energy
business.
"By selling the brand now we can realise value for our
shareholders and differentiate our businesses, establishing a new
name that reflects our future in aviation and energy."
The person responsible for arranging the release of this
announcement on behalf of Stobart Group is Louise Brace, Company
Secretary.
Enquiries:
Stobart Group Limited C/o Newgate Communications
Charlie Geller, Communications Director
Newgate Communications +44 203 757 3406
Giles Croot +44 203 757 6884
Ian Silvera stobart@newgatecomms.com
Megan Kovach
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END
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