Isis in £11m deal for vehicle rental firm

NEXUS Vehicle Management, the Yorkshire business which allows corporate users to source vehicles from more than 40 suppliers online, has undergone an £11m buy-in management buyout (BIMBO) led by Isis Equity Partners.

Isis' equity investment in Nexus was led by Andrew Garside, a former 3i director in Yorkshire who is now based in London with Isis, and James Hall, who is based in Isis' Leeds office.

Leeds-based Nexus lets users rent vehicles through its IRIS service, a web-based system which automates the vehicle management process and manages the supply chain.

The company was founded in 1999 by Justin Whitson, while the IRIS system was launched in 2006, following a two year development project. Nexus said sales had more than doubled from 2006 to 2007 following the introduction of IRIS.

Nexus customers include those who have vehicle rental needs, fleet management companies, insurance service providers and daily rental providers who need to outsource specialist rental requirements.

Following the BIMBO Neil McCrossan, a vehicle rental industry professional, has joined Nexus as its chief executive. John Ellis, the operations director of Nexus, also led the deal and will help to lead the company following it.

Mr Garside said: “We are attracted to the fleet management sector as quality service providers earn loyal customers who are keen to outsource their fleet management requirements. Nexus provides a capable platform for the new management to grow a larger business in the sector.”

Mr McCrossan said: “Nexus is ideally poised for growth. In IRIS we have a unique market making portal bringing together users and suppliers of vehicle rental and providing added value to both buyer and seller.

“John and I look forward to really focusing on the needs of all our partners from both the supply and demand sides of the market and delivering to each of them best in class service solutions.”

Lloyds TSB Corporate Markets' acquisition finance team provided senior debt for the transaction.

Adrian Peckham, director at Lloyds TSB Corporate Markets, said: “Nexus Vehicle Rental has secured a market leading position in a highly fragmented sector by successfully developing software unmatched by its competitors.

“Drawing on the combined expertise of their new CEO and a sector-experienced private equity sponsor, the firm's enlarged management team is now in an ideal position to further extend its market share.”

Legal Advisers to ISIS were Stephen Rosen and Adam Crossley of Olswang, while Jonathan Reardon of Pinsent Masons provided legal advice to the Nexus management team.

Rebecca Watts and Hugh Jones of Osborne Clarke were legal advisers to Lloyds TSB.

Equity corporate finance advisers were Philip Bird and Stephen Bishop of Grant Thornton, while financial due diligence was provided by Jodi Birkett and Natalie Ward of Deloitte in Manchester. Commercial due diligence was given by Alex Marshall and Sebastian Chambers of CIL.

ISIS presently operates from offices in London, Birmingham, Leeds and Manchester and typically invests in transactions of between £5m and £75m in companies with profits of more than £1m.