Stobart's Biomass Joint Venture Buys Woodchip Firm For GBP2M

16th Jul 2010 07:27

LONDON (Dow Jones)--U.K. logistics and transport group Stobart Group Ltd. (STOB.LN) said Friday its joint venture firm Stobart Biomass Products Ltd. has acquired Sussex-based Amenity Horticultural Services Ltd. for around GBP2 million cash, in a move that will see it enter the renewable heat market. AHS manufactures and supplies woodchip biomass fuel for renewable heat to commercial and domestic users and Stobart Group Chief Executive Andrew Tinkler said the buy represents contracts for over 150,000 metric tons a year of biomass supply to the growing renewable heat market. Stobart Biomass Products, a joint venture by Stobart and Mr A.W. Jenkinson, will pay for the acquisition with two shareholder loans of around GBP1 million each from Stobart and Jenkinson. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires July 16, 2010 02:27 ET (06:27 GMT)