FMG completes sale of rental business
FLEET performance improvement company FMG Support has completed the sale of its vehicle rental business to Nexus Vehicle Rental.
The sale will provide a cash injection to drive forward future growth plans by streamlining the business and allowing it to focus on its core areas of expertise.
There will be no redundancies following the sale and all of the staff of the rental business will be offered roles in either the incident management or roadside repair and recovery divisions of the company.
In March 2008, the FMG Support board team secured a £7m investment from private equity firm Aberdeen Asset Management to fund further market growth and innovation.
The announcement follows the news that the Huddersfield-based firm has won a national contract from the Highways Agency to clear Britain’s roads of abandoned, crashed or broken down vehicles.
The contract will create more than 100 new jobs.
Chief executive Nick Brown, said; “Vehicle rental has delivered a significant commercial contribution to FMG Support over the years since its creation, however for the next phase of our development it is important that we focus on the core competencies of the organisation.
“I am delighted that our continuing growth allows us to not just keep our exceptional rental team, but also to employ more than 100 people over the course of the next year. The board and I believe it is appropriate that in order to focus on developing our incident management and roadside proposition, this is the right time to enter into this transaction”.
In three years, FMG Support’s turnover has grown from £29m to £73m, while its staff numbers have soared from 161 to 360.
FMG Support is the UK’s largest independent fleet performance improvement company and has been operating since 1986.
