NEXUS VEHICLE RENTAL has new private equity owners after Bowmark Capital completed a £51m investment.
The Leeds-based company has traditionally been a UK vehicle rental business, but has plans to grow its geography and to deploy its technology platform that fulfills rental management services into other sectors.
Its former owner Livingbridge, which first invested in Nexus in 2008 for £9.5m, has now stepped aside and sold its majority shareholding to Bowmark which will take two seats on the Nexus board.
David Brennan, chief executive of Nexus, said: “We now have a five-year journey to work on with Bowmark that enables us to look at investments early in the cycle. A new investor brings new funds and new energy.
“We will now look at how we can broaden the business. We will look at acquisitions, we will continue to grow the core business – we have a very small share of a very large market – and we will look at geographic expansion outside of the UK.”
Bowmark Capital specialises in UK growth companies valued at up to £150m and has supported more than 60 businesses across a range of industries and manages and advises funds totalling £850 million.
“We have been highly impressed at the record of achievement at Nexus and believe the company, under its senior management team, is ideally positioned to drive future growth and development through its commitment to continuing technological innovation to deliver outstanding customer service,” said Bowmark partner Julian Masters.
Nexus broke even on turnover of £45.5m in the year to September 2014, its most recent published accounts, which has more than doubled during Livingbridge’s ownership.
The group has been shifting its focus to corporate customers, away from the “volatile” insurance replacement sector, and now provides clients with access to over 500,000 vehicles in over 2,000 rental locations across the UK.
It employs around 100 people, of which 90 are based in Leeds with the remainder in West Drayton, east London.
Advisors to the transaction were PwC, Addleshaw Goddard, Park Place Corporate Finance, Squire Patton Boggs and Deloitte.
Stuart Warriner, corporate finance partner at PwC, added: “This transaction further emphasises the strength of technology led businesses in the North and the appetite for private equity investment in the regions.”
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