Eddie Stobart Logistics is set to float on the London Stock Exchange.

Holding company Greenwhitestar UK has announced that there will be an initial public offering (IPO) on the Alternative Investment Market,

It is targeting a market capitalisation (value) of £550m.

Greenwhitestar - which will rename itself 'Eddie Stobart Logistics plc' and should maintain a 30 per cent stake in the business - said in announcement to the stock market that the IPO will give give the company the money needed to fund growth and that the float will allow it to "undertake selected acquisitions".

Eddie Stobart can trace its roots to the 1970s when it began as an offshoot of an agricultural contracting business in Hesket Newmarket. It is now headquartered in Cheshire and employs about 5,500 people with more than 2,000 vehicles and almost 4,000 trailers

In 2014 then owners Stobart Group sold a 51 per cent stake in 2014 to DBay Advisors, a private-equity group in the Isle of Man, which owns Greenwhitestar. This was done so the firm could focus more resources on its energy, aviation, rail and infrastructure division, which includes Carlisle Airport.

Stobart Group retained a 49 per cent stake in the logistics business and has announced that it wants to maintain a "meaningful stake" following the IPO.

Alex Laffey, chief executive officer of Greenwhitestar, said: "Eddie Stobart is widely recognised as a leading supply chain solutions provider and an IPO is an exciting next step for the business that will give us a strong platform for further growth.

"We have transformed the business over the last three years and made significant investment in our customised technology and systems alongside developing our management and workforce to support growth in new business sectors. Our cost-effective solutions and best-in-class service enable our customers to focus on their core activities.

"We look forward with confidence to creating value for our customers and our shareholders in the years to come."

Eddie Stobart staff will be offered the chance to buy shares in the IPO, which is being handled by brokerage firm Cenkos Securities and is expected to take place in April.