A GUERNSEY property firm has bought out Eddie Stobart. Westbury Property Fund Ltd is paying £138m. for the UK haulage company in a complex reverse takeover.

The merger will create an enlarged company, known as Stobart Group Ltd, specialising in road, rail and port transport logistics, with assets of more than £250m.

The new company will also take up Westbury’s share listing.

Under the transaction, Westbury brings with it a port development site in Runcorn, a rail freight operating business and a rail terminal in Widnes.

It is also buying rail freight handling business O’Connor.

The company already has a strong balance sheet, an experienced board and an established following from some leading City investors.

Eddie Stobart is currently the largest privately owned haulage group in the UK, with a fleet of more than 1,500 trailers and 900 trucks.

Each is given a female name, which helped to create an audience of fans who compete to spot them on the road.

Westbury investment manager Richard Burrell said the merger would offer customers a truly integrated transport and logistics solution.

‘The board of Westbury believes very strongly that in the coming years the opportunity for forward-thinking, more environmentally sensitive logistics businesses will be considerable.

‘I am delighted that in Eddie Stobart we have found a very talented team of people with a great record who share that view.

‘Eddie Stobart is a first-class business in its own right and, together with Westbury’s developing deep sea, inland waterway, rail and storage businesses, which are considerably strengthened by the acquisition of O’Connor and the disposal of substantially all of Westbury’s property portfolio, we believe we have the makings of a compelling multi-modal logistics business which will bring valuable benefits to customers and shareholders.’

The merger, which is subject to shareholder approval, should be completed at an extraordinary general meeting on 19 September.

The new group will have an established portfolio of long-term, big brand customers, including Tesco, Coca-Cola and Johnson & Johnson, employing more than 2,000 across the UK.

At Widnes, the combined group plans to develop more than 1m.sq-ft of additional warehousing space which could create in excess of 1,000 new jobs.

Eddie Stobart managing director William Stobart, whose father founded the firm more than 30 years ago, will become chief officer of the new firm.

‘We believe the future of industrial logistics is about the integration of all modes – linking roads with rail, ports and waterways and, in time, air freight.

‘We believe the merger of our company with one that has a complementary strategy to ours, a strong balance sheet and an experienced board, will enable us to invest and grow to benefit our customers, shareholders and staff.

‘A key part of the future strategy of the new, enlarged business will be to invest in the new port at Runcorn and maximise the development opportunities at Widnes to create an inter-modal port facility with road, rail and deep sea and inland waterway access capable of handling significant cargo volumes, linked to the haulage network.