The iconic Eddie Stobart trademark has been sold for £10 million and Stobart Group will change its name.

The Eddie Stobart brand and associated trademarks were owned by Stobart Group Brands LLP, a wholly owned subsidiary of Stobart Group.

It licensed the brand to Eddie Stobart Logistics in February 2014, with a £13.7 million fee attached, as part of the initial partial sale of the Eddie Stobart business.

The 15-year licence agreement provided the first six years – to February 29 of this year – royalty free.

From March, an annual £3 million licence fee was due, until 2029, but could be terminated by Eddie Stobart and was conditional on the logistics firm hitting targets.

However, in an update to the London Stock Exchange this morning, Stobart Group said: "The sale of the Eddie Stobart and Stobart brands now will result in an immediate cash receipt.

"It will also have the effect of helping investors and stakeholders to more easily differentiate between Eddie Stobart’s logistics business and Stobart Group’s aviation and energy businesses through Stobart Group transitioning to a different name."

Eddie Stobart will give Stobart Group an initial £6 million, then £2.5m on or before December of this year and the final £1.5m will be paid 36 months after the sale.

Stobart Group will change its name before February 2021. But, it said, a number of Stobart divisions will continue to use the brand for up to 36 months after completion and this will be licensed on a royalty free basis from Eddie Stobart Logistics.

Warwick Brady, chief executive of Stobart Group, said: "Stobart Group is proud of the brand it has built over many years. It is an iconic and highly recognisable name, associated with great customer service.

“However, the brand is primarily associated with the highly visible Eddie Stobart lorries.

"This has often created confusion for investors and other stakeholders between the Eddie Stobart Logistics business operations and Stobart Group's focus on developing a valuable London airport and a high margin energy business.

“By selling the brand now we can realise value for our shareholders and differentiate our businesses, establishing a new name that reflects our future in aviation and energy.”

Stobart Group's new name has not been revealed.