Stobart Biomass Products, a joint venture between the Stobart Group and A.W. Jenkinson, has acquired certain parts of the business and assets of Sussex-based Amenity Horticultural Services, a leading UK manufacturer and supplier of woodchip biomass fuel for renewable heat to commercial and domestic users.
Stobart said the total consideration for Amenity Horticultural Services will be approximately £2m, to be paid in cash on completion.
Stobart said the deal will also benefit the 528,000 sq ft chilled distribution facility in Widnes, which is part of its Mersey Multimodal Gateway, 3MG.
James Andrew, a spokesperson for Stobart, said: "This will definitely have relevance to the North West as well as being a major expansion to the business.
"It will benefit the Multimodal Gateway in Widnes and help make the site totally carbon neutral. Tesco is already beginning to use biomass on the site."
The Stobart Group and A.W. Jenkinson have advanced approximately £1m each to Stobart Biomass Products in shareholder loans for the acquisition.
Allan Jenkinson, sole proprietor of A.W. Jenkinson Forest Products, is a 50% shareholder in both Stobart Biomass Products and Amenity Horticultural Services. The acquisition brings the management and execution of all existing Amenity Horticultural Services supply contracts to Stobart Biomass Products and represents an immediate leading position in a new market for Stobart Biomass Products.
Andrew Tinkler, chief executive officer of the Stobart Group, added: "This acquisition represents contracts for over 150,000 tonnes per year of biomass supply to the rapidly growing renewable heat market, and provides Stobart Biomass Products 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 Amenity Horticultural Services positions Stobart Biomass Products to grow strategically with the sector."
Stobart announced its new venture with biomass supply and distribution firm A.W. Jenkinson Forest Products in March.
A.W. Jenkinson Forest Products handles over 2.5 million tonnes of wood products a year.