16 Jul 2010 07:00
Friday 16 July 2010
STOBART BIOMASS PRODUCTS LIMITED ENTERS RENEWABLE HEAT MARKET WITH ACQUISITION OF AHS ENERGY
Stobart Biomass Products Limited ("SBPL"), a joint venture between the Stobart Group and Mr A.W. Jenkinson, has acquired certain parts of the business and assets of Sussex-based Amenity Horticultural Services Limited ("AHS"), a leading UK manufacturer and supplier of woodchip biomass fuel for renewable heat to commercial and domestic users.
The total consideration for AHS will be approximately £2 million, to be paid in cash on completion. Stobart Group and Mr Jenkinson have advanced approximately £1 million each to SBPL in shareholder loans for the acquisition. Mr Jenkinson, a related party, is a 50% shareholder in both SBPL and AHS. The acquisition brings the management and execution of all existing AHS supply contracts to SBPL and represents an immediate leading position in a new market for SBPL.
Commenting on the acquisition, Stobart Group CEO, Andrew Tinkler, said: "This acquisition represents contracts for over 150,000 tonnes per year of biomass supply to the rapidly growing renewable heat market, and provides SBPL with a leading position in a new market. Thanks to progressive corporate policies and Governmental support, this is a market at the tipping point of massive potential growth, and the acquisition of AHS positions SBPL to grow strategically with the sector."
Ends
About SBPL
SBPL sources and distributes supplies of biomass fuel to the UK renewable energy market, leveraging the strong relationships between A.W. Jenkinson Forest Products - the biomass supply and distribution market leader - with its network of customer biomass power facilities. Access to Stobart's logistics network and brand strength provides substantial strategic advantage to SBPL, and brings improved efficiency to the complex biomass logistics and supply chain, which is a major component of the cost base for renewable fuels.
Finite UK supply and infrastructure means that imported wood and other biomass products are likely to become a significant source of raw material going forward, leading to substantial synergies between SBPL and Stobart Group, which will help support the core Group business through its Stobart Rail, Stobart Ports, Stobart Air and Eddie Stobart divisions.
About Stobart Group
Stobart Group is listed on the London Stock Exchange in the FTSE250 (LSE:STOB),
and is the UK leader in multimodal transport and logistics solutions. It is one of the most recognised and strongest brands in Britain, best known for its iconic Eddie Stobart trucks. Today, Eddie Stobart is the name behind a road haulage fleet totaling 1,850 trucks and some seven million square feet of cutting-edge warehousing facilities. By size, Eddie Stobart has the best vehicle utilisation in the industry, helping to maximise efficiency and environmental benefits.
The Group has pioneered several environmental initiatives in the industry such as modal shift from road to rail with the Stobart Rail low-carbon service that brings fresh produce into the UK from southern Europe via the Channel Tunnel. Stobart is also innovating with the creation of Stobart Biomass Products Limited, a new venture with A. W. Jenkinson - the UK leader in biomass fuels. This positions the Group at the heart of the fast growing and transport intensive market for renewable energy.
Stobart Group employs over 5,000 people in 40 different locations, offering multimodal logistics solutions to customers across Europe through the Stobart Rail, Stobart Ports, Stobart Air and Eddie Stobart Divisions. The Group is fast developing these divisions into industry leaders, and by developing assets such as London Southend Airport, Carlisle Lake District Airport and Mersey Multimodal Gateway in Widnes is creating new business for the Group's core transport and logistics operations.
www.stobartgroup.com
Further information contact:
James Andrew 07772 534 985
Britt Keay 07545 078 023
Ben Whawell 01925 605 400