Zenith buyout wins inaugural Deal of the Month award

THE fourth successful buyout of Zenith Vehicle Contracts, the Yorkshire company led by entrepreneur Andrew Cope, has won TheBusinessDesk.com’s inaugural Deal of the Month award.

In a traditionally quiet period for the deals market, four major transactions – Zenith, the £75m management buyout of Leeds manufacturing firm Allied Glass, IT infrastructure provider Esteem Systems, of Wetherby, buying SiRViS, and Leed-based turnaround specialist Endless acquiring timber-frame conservatory specialist Amdega – vied for the August title in a close contest.

Allied Glass was second in the judging and Amdega third.

Eleven of our 15-strong judging panel of heavyweight professionals from the region’s corporate finance and legal community voted for the Zenith deal, which saw Morgan Stanley Private Equity take a 60% stake in the independent fleet management specialists and Barclays Private Equity exit the business.

The deal was the fourth buyout of Zenith in seven years and values Zenith at around £85m. Established in 1989, Zenith is one of the UK’s largest independent leasing, fleet management and vehicle outsourcing businesses. It manages more than 27,000 vehicles on behalf of its corporate clients.

Zenith completed its first buyout with venture capital group 3i in December 2003 when it was valued at £18m, and was involved in subsequent deals with private equity groups Dunedin in June 2005 and Barclays PE in June 2007.

Click here to meet our high profile Yorkshire Deal of the Month judges 

Commenting on the top ranked deals in the August Deal of the Month competition some of our judges said:

Zenith:

Colin Stirling, Spirit Capital: “A continuation of the fantastic growth story at Zenith under a great management team.”

Lee Collinson, Barclays Corporate: “The fourth buy-out of a business where a quality management team know how to deliver true shareholder value.”

Christian Mayo, KPMG: “Another buy-out for a great management team.”

Stuart Warriner, PwC: “I think for a business of this size to have convinced four successive PE owners that there is an investment case is truly exceptional.”

John Swarbrick, LDC: “Potentially transformational deal which could lead to rapid acquisition led growth for a business which continues to thrive in a challenging sector.”

Garry Wilson, Endless: “The Zenith management team are serial deal makers and every one of their investors has made great returns. They’ve done it again and deserve huge recognition for consistent, profitable growth.”

Ian Marwood, Grant Thornton: “A consistent story of growth and deal excellently presented to still attract PE appetite fourth time around.”

Allied Glass

Keith Froud, Eversheds: “An excellent deal for a longstanding Yorkshire business.”

John Holden, Gordons: “A significant transaction for a proper manufacturing business: great realisation for sellers, good potential for planned growth for the company and opportunities for the developing management team and Barclays Private Equity.”

Amdega

David Buckley, of Ernst & Young: “A strong brand, a great example of Endless backing a business through the recession.”