Eddie Stobart Logistics to buy retail logistics management group iForce

Eddie Stobart Logistics – set to float on the Alternative Investment Market (AIM) next week 25 April – has conditionally agreed to acquire multi-channel retail logistics management group iForce for £45m.

According to its admission document, the “acquisition will add a more focused e-commerce offering to Eddie Stobart’s existing business model”.

In the financial year ending 3 July 2016, iForce Group generated a turnover of £56.3m and a pre-tax profit of £1.7m. This was up on a turnover of £50m for the year ending 5 July 2015 and a pre-tax profit of £779,000. The admission document states net assets as of the most recent financial year were £6.5m.

The £45m acquisition price will be settled with £37m in cash, paid on Eddie Stobart’s admission to AIM, alongside the issue of five million ordinary shares in Eddie Stobart Logistics to a selling shareholder at iForce.

iForce said in January that during 2016, the company handled 85.1 million items on behalf of clients such as John Lewis, Aldi and Maplin, representing a year-on-year growth of 18.2%.

Redditch-based iForce operates four leased sites, and a further six under licence, with its clients and employs approximately 1,000 people. Key management will remain in place following completion of the deal.

Stobart Group is set to make £113m from the return of Eddie Stobart Logistics to the stock market.