Stobart Group in talks to buy Autologic

Autologic is in talks with Stobart Group over a potential cash offer by the Cumbrian giant for the number one operator in UK automotive logistics.

The Northampton-based operator, which revealed a turnover of £144.7m and a pre-tax profit of £2.1m for the year ending 31 December last month, says that there is “no certainty that an offer for the company will be made or proposed”.

Stobart is required to either announce a firm intention to buy Autologic, or withdraw its offer, by 5pm on 21 June. Further announcements will be made “as soon as possible”.

For the past two years, Autologic has been snapping up assets from its failed rivals in the automotive logistics market.

It 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 per annum to its UK revenues, while in 2010 it added the assets of the then number three in the market MCD/ Autocarriers to its fleet.

Earlier this month Stobart Group said its Eddie Stobart division had seen turnover rise £44.2m to £519.5m, while pre-tax profit fell from £34.2m to £27.4m.

At a current share price of 11.5p values Autologic at £7.2m. Two years ago its shares were trading at 28p.