Stobart Group and Autologic enter talks over acquisition
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By Christopher Walton
STOBART GROUP and Autologic remain in talks over a potential cash offer by the Carlislebased firm for the largest car mover in the UK.
Both parties say there is “no certainty that an offer for the company will be made or proposed” and refused to comment further after the offer was made last week.
Stobart is required to either reveal a firm intention to buy Autologic, or withdraw its offer, by 5pm on 21 June.
Earlier this month Stobart Group’s Eddie Stobart division said it had seen turnover rise £44.2m to £519.5m, while pre-tax profit fell from £34.2m to £27.4m. Autologic had a turnover of £144.7m and a pre-tax profit of £2.1m for the year ending 31 December.
For the past two years, Autologic has been snapping up assets from its failed rivals in the car transporter market and had only just completed the acquisition of certain assets of Spirit Motortransport, which entered administration on 11 May.
In April it said the acquisition of assets of Sensible Transport would add £6m a year to its UK revenues while in 2010 it added the assets of the then number three in the market MCD/ Autocarriers to its fleet.
An industry source tells CM the bid makes “perfect sense” for both parties as Autologic’s share price is at an all-time low, and that the deal would be “good for the sector”.