News / EV Cargo breaks up model with sale of UK logistics arm to Stobart

EV Cargo’s sale of its UK-based Solutions and Distribution arm to William Stobart’s WS Holdco marks a decisive shift in strategy, as the private equity-backed group pivots towards a more focused, asset-light global forwarding model. 

The move, announced this month, will see the transport and contract logistics division – incorporating legacy operations such as CM Downton and NFT Distribution – transferred to WS Holdco, strengthening the latter’s growing UK logistics platform. Terms were not disclosed. 

While EV Cargo has framed the deal as a strategic refocus, the disposal also appears to represent the first concrete step in a longer-running effort by owner EmergeVest to realise value from the business, following several years of expansion, internal friction and unfulfilled exit plans. 

Formed in 2018 through the combination of multiple UK logistics and supply chain businesses, including Allport Cargo Services, Palletforce and Adjuno, EV Cargo was designed as a diversified platform spanning forwarding, domestic logistics, express distribution and technology. 

At the time, EmergeVest outlined ambitions to scale the group rapidly and ultimately pursue an IPO within five years. 

That strategy delivered growth, with revenues reaching £848.7m in 2024 and EBITDA rising sharply, but also created a complex, multi-division structure combining asset-heavy UK operations with higher-margin international forwarding activities. 

The latest announcement signals a clear break from that model. 

“Diversification helped us build scale, resilience and capability. Now, increased focus will help us unlock the full potential of our global forwarding network,” said founder and executive chairman Heath Zarin. 

Central to the shift is EV Cargo’s decision to concentrate on global forwarding and related services, which it describes as its “core growth platform”. 

The division handles some 350,000 teu of ocean freight and more than 100,000 tonnes of air freight annually, supported by operations across 21 countries. 

By contrast, the divested Solutions business is predominantly UK-focused and asset-intensive, encompassing fleet, warehousing and contract logistics. 

Its sale reflects a broader industry trend favouring asset-light models, which typically offer higher returns and greater scalability. 

EV Cargo said the transaction would result in a “stronger balance sheet”, with reduced debt and increased capacity to invest in technology, including AI, and targeted growth initiatives. 

The disposal follows mounting market speculation over the past two years that EmergeVest was seeking an exit from EV Cargo. 

An IPO was previously considered, with valuations once estimated at around $1.1bn, although more recent market chatter suggested expectations had fallen significantly amid a downturn in freight markets. 

Sources had also pointed to growing impatience among investors, with one describing limited returns to date. 

At the same time, the group has experienced internal tensions, including a high-profile dispute with Hong Kong-based Cargo Services Group, which pursued legal action over both a $45m investment and operational disagreements tied to EV Cargo’s expansion in China. Cargo Services Far East was acquired by DP World in 2024. 

Management changes in 2025, including Mr Zarin stepping back to executive chairman and EmergeVest managing director Simon Pearson taking over as group CEO, further fuelled expectations of a transaction. 

Against that backdrop, the sale of the Solutions division suggests a shift away from a single, large-scale exit towards a more incremental approach. 

By divesting its lower-growth, asset-heavy operations, EV Cargo is reshaping itself into a more focused global forwarder, potentially improving its valuation and attractiveness to buyers or public markets. 

For WS Holdco, meanwhile, the acquisition fits a buy-and-build strategy aimed at creating a scaled UK logistics platform, with the addition of EV Cargo’s domestic operations offering opportunities for consolidation, efficiency gains and cross-selling. 

EV Cargo said it believed the Solutions business would benefit from being part of a group with a dedicated UK transport focus and capital investment aligned to fleet and depot operations. 

The reference to a “post-transaction balance sheet” and increased investment capacity suggests the latest deal may not be the last. 

With its portfolio simplified and debt reduced, EV Cargo now appears positioned for the next phase of its evolution – whether that ultimately takes the form of a sale, merger or renewed IPO attempt remains to be seen. 

What is clear is that the group is moving away from the diversified structure on which it was built, and towards a more streamlined, forwarding-led model designed to deliver stronger returns for its private equity backers.