UK Eddie Stobart Logistics to acquire The Pallet Network for $69.4 mln

UK-based integrated transport logistics Eddie Stobart Logistics plans to acquire pallet distribution services provider The Pallet Network Group for 52.8 million pounds ($69.4 million), on a cash and debt-free basis.

In addition, the group intends to raise 30 million pounds through a placing of 21.4 million shares at a price of 140 pence per share, the proceeds of which will go towards funding the acquisition and corporate purposes.

Eddie Stobart said that its revenue was up by 25 percent to 357.7 million pounds, from 286.8 million pounds the year before, due to strong organic growth from contracts and contributions from acquisitions, such as iForce in April and Speedy Freight in May 2017.

The deal is expected to be completed on Friday, with 44.1 million pounds to be paid on completion and 8.7 million pounds paid to the sellers over a two-year period.