Stobart acquires Innovate Logistics

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Stobart Group has taken over the chilled and ambient goods distribution of Innovate Logistics from its administrators BDO Stoy Hayward.

The acquisition comes as the company tries to broaden its chilled distribution operations in the UK, in a bid to offer customers more choice and flexibility.

Logistics Manager announced last week that the frozen arm of the Innovate business has been bought by Yearsley Group.

As part of the agreement, Stobart will take over a number of Innovate contracts including a warehousing operation for existing client Nestlé.

The group will license 280 tractor units and 350 trailers, creating a total fleet of more than 1,800 trucks and 3,200 trailers, as well as assuming the associated warehousing for an initial six month period so it can service existing contracts. Stobart will then have the option of taking over the leases at the end of the term.

Around 1,300 Innovate employees are also expected to transfer to Stobart, increasing its workforce to 5,300 people, based at 40 locations across the UK, Ireland and Europe.

The company expects to enhance its earnings in the first full year with Innovate generating an annual turnover of around £100 million.

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