BRITAIN'S best-known road haulage company was sold yesterday for £138m.

Eddie Stobart - famous for its fleet of 900 green and red trucks - has been bought by former property group Westbury, which is being turned into a combined transport and logistics business.

The merged business will be renamed Stobart Group, with Eddie Stobart's present owners, Andrew Tinkler and William Stobart, remaining with the enlarged group.

The combined firm will be floated on the London Stock Exchange next month.

The new group will bring together the road transport, warehouse and rail freight operations of Carlisle-based Eddie Stobart with Westbury's expanding ports and logistics business.

Mr Stobart, managing director of Eddie Stobart, said: "We believe the future of industrial logistics is about the integration of all modes - linking roads with rail, ports and waterways and, in time, air freight.

"We believe the merger of our company with one that has a complementary strategy to ours, a strong balance sheet and an experienced board, will enable us to invest and grow to benefit our customers, shareholders and staff."

Despite the change of name to Stobart Group, the trucks will remain on the road under the name Eddie Stobart.

The deal, which was handled by Pricewaterhouse-Coopers (PWC), in Newcastle, creates a business with about 2,000 staff and the spokesman said there was long-term potential to create about 1,000 jobs through the tie-up.

PWC corporate finance director Paul Mankin said: "PricewaterhouseCoopers is delighted to have been able to assist with the merger of Eddie Stobart and Westbury to create a truly integrated transport and logistics company.

"We have been able to deliver a transaction structure that will see the business go from strength to strength and wish the Stobart Group Limited every success in the future."

Eddie Stobart was founded in the Fifties and operates from 27 sites across the UK and Belgium. Its main bases are in Carlisle, Warrington and Daventry.