Enterprise Rent-A-Car expands UK operation with Shropshire acquisition

CAR rental group Enterprise Rent-A-Car has expanded its UK operation with the acquisition of Shropshire’s Burnt Tree, one of the UK’s largest providers of commercial rental vehicles to companies and public sector organisations.

The terms of the deal have not been disclosed but the purchase increases the breadth of vehicles and services Enterprise will be able to offer its customers. The Burnt Tree business, which has been trading for more than 30 years, will be absorbed into Enterprise’s commercial vehicle hire division, Flex-E-Rent.

The agreement includes Burnt Tree’s diverse commercial fleet of 17,000 vehicles, including commercial vans, HGVs, refrigerated trucks and accessible minibuses, its proprietary fleet management technologies, as well as its network of 20 branches and a team of 400 employees.

In the immediate short-term, the Enterprise Flex-E-Rent and Burnt Tree businesses will continue to operate as two separate brands, with a view to creating a combined entity that will be headquartered in Shrewsbury.

Enterprise said the deal significantly increased its position in the flexible commercial vehicle rental sector and took its fleet of commercial vans and trucks to more than 25,000.

Enterprise UK and Ireland managing director, Mike Nigro, said: “We are committed to the growth of our flexible commercial vehicle business, which has grown organically in recent years.

“We could immediately see the potential of Burnt Tree to give our customers access to skills and services that are particularly suited to the needs of commercial vehicle customers. Burnt Tree also has the same culture of delivering outstanding customer service as Enterprise and shares a rich heritage of conducting business in the UK.

“Burnt Tree has some unique expertise that it can bring to Enterprise and it will also benefit from becoming part of a truly global organisation. The combined business post-acquisition will be far stronger with greater economies of scale and better technology, while the transfer of knowledge will allow us to better serve our customers.”

The new business will be led by Danny Glynn, Director, Enterprise Flex-E-Rent. Burnt Tree chief executive, Richard Metcalfe, will remain in an advisory capacity to help steer the direction of the combined business.

Metcalfe said: “Last year we stated our ambition to become the leading and largest business in our industry. In time, this agreement will allow Burnt Tree to achieve its full potential to become the market leader. It will become part of the world’s largest vehicle rental company, which, like Burnt Tree, is privately owned.

“I know that there is both the vision and resources to grow the business over the long-term, which means there will be opportunities for people here. I would like to thank everyone sincerely at Burnt Tree for all their hard work and for making the business such a success. This agreement marks the next phase of growth for the business.”

The Business Services team at Clearwater International advised Burnt Tree on the sale, led by partner Paul Jones, director John Clarke and assistant director John Davies.

Jones commented: “Burnt Tree is an extremely well established business with significant experience in its field. As the economy continues to strengthen and funding is more readily available, the vehicle outsourcing market is on an upward trajectory.

“The Enterprise deal is illustrative of industry attractiveness and the interest for delivering growth strategies through acquisitions. There has also been notable activity from private equity players, such as HgCapital and Sovereign, which also demonstrates the growth potential within the wider commercial vehicle rental, contract hire and fleet management market.”