HgCapital swoops for Zenith
CONTRACT hire and vehicle leasing business Zenith has been acquired by HgCapital from its previous owners Morgan Stanley Global Private Equity (MSPE) in a deal that values the company in excess of £200m.
Subject to regulatory approval, the deal is the fifth buyout in 10 years for the business and sees Zenith’s chairman Andrew Cope, who has been with the business from its early days, step down from his role. However, he 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 Simon Cottle, Andrew Land and Nick Turner.
Zenith 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, said: “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.”
MSPE’s managing director Jean-Marc Jabre added: “Over the last few years, we have worked closely with the Zenith management team to grow the business, invest in its infrastructure, including its brand, the award winning Pulse platform, and its funding strategy. We are proud to have played a part in Zenith’s history and wish them well on the next steps of their development with Hg Capital.”
HgCapital and the Zenith management team were advised by the Leeds office of Deloitte led by Martin Jenkins and by a team from Squire Sanders led by Jonathan Jones.
Whilst the terms of the latest transaction were not disclosed, reports have suggested a value for Zenith in excess of £200m.
MSPE acquired Zenith in September 2010 for £85m. Zenith has grown its sales from £40m in 2004 to £184m in 2013 and profits from £2.3m to £15.3m over the same period.
Zenith was founded in 1989 and celebrates its 25th anniversary this year.
