Zenith looking to drive further growth following refinancing deal
YORKSHIRE-BASED fleet management group Zenith is looking at acquisitions coupled with strong organic growth following a £91m refinancing deal.
The Leeds business, which has more than 40,000 vehicles making it one of the leading fleet management and vehicle outsourcing providers in the UK, has completed a significant refinancing of its credit facilities, following a rapid de-leveraging of the business over the last three years.
The business said that the new capital structure provides it with a “scalable platform from which to pursue its strategic growth aspirations, while maintaining a continued focus on innovation and customer service”.
The transaction expands the company’s panel of lending partners, bringing Lloyds and ICG alongside long-term funders RBS and HSBC.
Zenith, which is chaired by entrepreneur Andrew Cope, continues to be majority owned by Morgan Stanley Global Private Equity, which invested in the business in September 2010.
Mark Phillips, Zenith’s chief financial officer, led the process and commented: “The company has significantly de-leveraged since Morgan Stanley Global Private Equity’s acquisition. We therefore had the opportunity to improve the efficiency of our capital structure. We took advantage of an attractive financing environment to raise additional financing and position our company for continued growth and expansion.”
Jean-Marc Jabre, executive director, Morgan Stanley Global Private Equity, added: “Zenith has been on a roll, winning new customers and earning the industry’s recognition through a number of awards this year. We’re very proud of what the business has achieved and supportive of its vision for continued growth and success.”
Zenith was advised by Deloitte’s debt advisory team and took legal advice from Weil, Gotshal & Manges. Due diligence was provided by KPMG and Squire Sanders. Addleshaw Goddard represented the lenders.
