James Irlam & Sons Ltd (Acquired by Stobart Group 2008)

Note: This company is no longer trading as a separate enterprise.

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2008

March - Stobart Group Limited announced its first acquisitions since listing on the London stock market in September 2007. Stobart proposes to acquire James Irlam & Sons and two smaller businesses, alongside a placing and open offer of new ordinary shares.

The Irlam Group, said to be one of the largest independently-owned road transport logistics providers in the UK, is set to be acquired for £59.9m (€78m), comprising £36.2m (€47m) cash, £10m (€13m) in shares and £13.7m (€18m) in loan notes. Based in Chelford, Cheshire, northern England, Irlam provides transport, warehousing and contract packing services for blue chip companies including Proctor & Gamble, Danone Waters and Pedigree.

Stobart said Irlam would complement its existing business operations, increase efficiency, add significantly to the scale of its core transport and storage business, and enhance its customer base.

"The acquisition brings a strong and proven operational team of managers with whom Stobart has a longstanding working relationship, including David Irlam (CEO) who will join the group's board. As a result of the acquisition, Stobart will operate more than 1,300 trucks, 2,300 trailers and employ over 3,500 people," it stated.

The second planed acquisition is that of WA Developments, a transport infrastructure engineering specialist, which has been advising Stobart on the redevelopment of the group's inland port operation in Widnes and potential port operation in Runcorn, north-west England. "The proposed acquisition, for a consideration of £10m (€13m) in cash, will bring vital infrastructure capability and expertise in-house for the continued development of Stobart's multimodal transport offering," stated Stobart.

Stobart also proposes to enter into an option to acquire Carlisle Airport in northern England for up to £15m (€19.5m), comprising £2.5m (€3.3m) in cash and £12.5m (€16m) in shares. Carlisle Airport owns 460 acres of land in Carlisle "on which Stobart proposes to build a new logistics centre to consolidate its facilities in the region, subject to planning permission".

"The acquisition offers the group the potential to develop aviation activities, including air freight, from the site in the future," stated Stobart. "The decision to acquire the site is subject to a comprehensive appraisal with feasibility and valuation studies. Upon conclusion of the appraisal, the board will decide whether in the best interests of the company to seek shareholder approval to exercise the Carlisle Airport option."

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James Irlam & Sons Ltd is one of the largest independently owned haulage companies in the UK.  The company commenced trading more than fifty years ago as a one-man haulage business, moving tomatoes and cucumbers to Manchester markets.  Today, the company works on behalf of national conglomerates, including big supermarket chains, operating a  fleet of 350 trucks; each covering 100,000 miles a year and employing a staff of almost 600.  The company's focus has been to concentrate on the distribution of ambient goods for the Food and Soft Drinks sector.