Warrington-based Eddie Stobart Logistics plc said it agreed to acquire The Pallet Network Group (TPN) for £52.8 million.

Eddie Stobart also announced a placing with institutional investors to raise £30 million through the issue of 21,428,572 shares for 140p.

“The placing was well supported by new and existing institutional investors,” said Eddie Stobart.

“Of the total consideration of £52.8 million, £44.14 million is payable in cash upon completion and the remaining £8.66 million will be payable to certain of the sellers over a period of two years following completion.”

Eddie Stobart CEO Alex Laffey said: “We are delighted that TPN will be joining Eddie Stobart Logistics.

“TPN is a leading player in pallet distribution across the UK and we are confident that this transaction will significantly enhance our capabilities in a space in which we do not currently operate and consequently offers cross-selling opportunities to serve our clients’ growing needs.

“I would like to welcome Mark Duggan, managing director, the management team and the TPN network members to Eddie Stobart Logistics and look forward to working closely with them all.

“This acquisition is in line with our strategy and the board is confident that TPN will strengthen our position as a leading provider of end-to-end supply chain solutions …

“The TPN management team, led by Mark Duggan, will continue to run the TPN business following completion.

“The acquisition is expected to be earnings and cash enhancing in Eddie Stobart Logistics’ 2018 financial year.”

Eddie Stobart also released a trading update for the six months to May 31, 2018, that revealed group revenues were £357.7 million, a 25% increase on the comparable period for 2017.

“This reflected strong organic growth from recent contract wins and the contribution from acquisitions (iForce and Speedy Freight) which continue to trade in line with expectations …” said Eddie Stobart.

“We continue to register strong levels of contract wins in all our sectors and during the first half of this year have won new contracts with an annualised value of circa £100 million. 

“We remain confident of delivering full year results in line with market expectations.”