23 January 2014
HgCapital, the Manager of HgCapital Trust plc, has signed a definitive agreement to acquire Zenith Vehicle Contracts Group Limited (“Zenith”), subject to regulatory approval. Zenith is one of the UK's leading independent leasing, fleet management and vehicle outsourcing businesses and provides a range of bespoke fleet management, fleet funding and vehicle rental management services to private sector organisations throughout the UK.
HgCapital Trust plc will participate in the acquisition of Zenith alongside other institutional clients of HgCapital, who will participate through the HgCapital 6 fund. The Trust, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all HgCapital's investments. The Trust will contribute a total of approximately £21 million.
Based on the 30 November 2013 reported NAV (and after adjusting for the impact of all reported transactions since 30th November) the Trust’s liquid resources available for future deployment are estimated to be £75 million (18% of the 30 November 2013 NAV). The transaction will reduce the Trust's outstanding commitments to invest in HgCapital deals to approximately £257 million.
HgCapital announces the signing of a definitive agreement to make an investment in Zenith
HgCapital and Zenith announced today that funds managed by HgCapital have signed definitive agreements to acquire a majority stake holding in the parent company of Zenith Vehicle Contracts Group Limited from Morgan Stanley Global Private Equity (MSPE), subject to regulatory approvals.
The highly regarded contract hire and leasing company was recently ranked 12th in the FN50’s list of the UK’s top 50 contract hire companies, with a risk fleet of 27,300 vehicles. It is the current Leasing Company of the Year and is one of the top 100 companies to work for in the UK.
Tim Buchan Chief Executive Officer commented “We thank MSPE for their contribution and are pleased to welcome HgCapital as our new partner. We look forward to working together on our long term strategy of continued investment in product and system developments”.
HgCapital’s Andrew Land said “We are delighted to be investing in Zenith and to be supporting its high calibre management team. We look forward to working closely with them to continue their growth and success”.
Zenith’s Chairman Andrew Cope will be stepping down from his post, but will remain an investor in the new group. The Zenith Board continues to be led by Tim Buchan and Mark Phillips alongside the existing management team plus the addition of HgCapital’s Andrew Land, Nick Turner and Simon Cottle.
HgCapital's financial and M&A advisors on the deal were Deloitte Corporate Finance and Sciowa.