BAVARIA Industries Group has confirmed that they have purchased Stobart Rail & Civils for the figure of £1,000.
Bavaria is a family holding company that owns interests in companies showing potential for improvement.
The sale is a share sale, meaning everything in the company has transferred to Bavaria, which includes assets, liabilities and debts.
Stobart Rail & Civils will have financial support by Bavaria as the business maintains a business as usual footing.
The sale of Stobart Rail of £1,000 is the initial cash consideration. Additional cash consideration of up to £2.9 million may be received based on the outcome of a single legacy contract.
The agreement also includes a three-month Transitional Service Agreement for Stobart Group.
A spokesman from Bavaria has commented: “We're really excited about working together and hope that being free from the large Corporate Parent will release the teams entrepreneurial flair!”
Warwick Brady, Chief Executive, Stobart Group, said: “In June we set out our strategy which will see the Group focus its investment on our aviation assets, particularly London Southend Airport. The sale of the Rail & Civils business removes the obligation for the Group to fund the expected ongoing losses of the Rail business and is a first step in achieving our goal of focusing our investment on aviation.”
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Good to hear. Perhaps they should continue with the overhead wiring replacements on the Southend Victoria line at Prittlewell and Southend Victoria. And replacing overhead wires at Stratford and Maryland in East London.
Also to replace the overhead wires between Fenchurch Street-Bromley-by-Bow in East London and Ardwick-Gosslop & Hatfield in Greater Manchester.