Following news in June 2020 that “interested parties” were looking to acquire Stobart Rail & Civils, it has been announced that the Bavaria Industries Group has indeed assumed control.
Bavaria is a family holding company based in Munich, Germany. It owns majority interests in companies “showing clear potential for improvement or facing new challenges”.
The announcement confirms that Bavaria has acquired all of the shares of Stobart Rail & Civils.
This means that Bavaria has bought everything in the company, including the incorporated company itself. Bavaria will continue to run Stobart Rail & Civils on a ‘business as usual’ basis, having acquired all of its assets, liabilities, and obligations, and will provide financial support as Stobart Rail & Civils works toward returning to profitability.
The agreement includes a three-month transitional service agreement for Stobart Group to provide certain back office services to support Stobart Rail & Civils in the immediate term, such as IT and payroll support.
Stobart Group announced that it would “withdraw from the Rail & Civils business” by February 2022 after its annual financial results showed the rail business posted a £7.1 million loss, compared with a loss of £4.8 million a year before.
However, a spokesman later said: “We have a number of identified interested parties who are better placed to invest in our Rail & Civils division.” It would seem that one of them was Bavaria.