Stobart Group makes £12.4m cash offer for Autologic
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By Christopher Walton
STOBART GROUP says it will cut empty running on Autologic’s fleet of car transporters, after it confirmed a formal offer of £12.4m for the largest automotive logistics firm in the UK.
Stobart directors say that Autologic’s ability to use Stobart Rail infrastructure will reduce the level of empty running endemic to the car transporter sector – with movements usually conducted from port to dealership resulting in an empty return leg.
Stobart chief executive Andrew Tinkler says: “Autologic is an excellent fit in our strategy to expand into complementary service offerings, and will facilitate our entry into the autotomotive-logistics market in a leading position.
“We expect to be able to drive substantial synergies and efficiencies from improved fleet utilisation, vehicle buying and maintenance, which will benefit our customers and drive value for our shareholders.” Stobart Group also believes Autologic would be able to benefit from its storage sites, both in terms of car storage and also overnight truck parking. There are also opportunities for Autologic to expand further into the European market, says Stobart.
Avril Palmer-Baunack, chief executive of Autologic, says: “[The deal] will enable us to provide new, flexible and innovative solutions to our customer base, while also giving us the opportunity to improve competitiveness as a result of being part of a bigger business.” Both parties were in talks since Thursday 24 May, and Stobart made the offer, in cash, through Stobart Holdings Ltd.