Stobart JV buys AHS Energy

16th Jul 2010 09:54

Stobart Biomass Products, a joint venture between logistics group Stobart and Mr A.W. Jenkinson, has acquired certain parts of Sussex-based Amenity Horticultural Services (AHS), a leading UK manufacturer and supplier of woodchip biomass fuel for renewable heat to commercial and domestic users. The total consideration for AHS will be about £2m, to be paid in cash on completion. Stobart and Mr Jenkinson have advanced approximately £1m each to SBPL in shareholder loans for the acquisition. Stobart's chief executive Andrew Tinkler said: "This acquisition represents contracts for over 150,000 tonnes per year of biomass supply to the rapidly growing renewable heat market, and provides SBPL with a leading position in a new market." "Thanks to progressive corporate policies and Governmental support, this is a market at the tipping point of massive potential growth, and the acquisition of AHS positions SBPL to grow strategically with the sector."