Buyout firm completes £200m Zenith deal

The London-based buyout firm bought Leasedrive, another independent operator and a major competitor of Zenith, at the end of last year.

The City watchdog approved the Zenith deal this week.

Tim Buchan, chief executive of the newly-merged group, said in a statement: “This is a hugely exciting time for Zenith and Leasedrive.

“We are both award winning businesses and by integrating our organisations we will significantly strengthen our competitive position and provide a platform for strong future growth.

“Together with my team it is our intention to continue to develop and deliver industry leading solutions and to leverage the skills and experience of both businesses to help support all of our customers’ mobility needs today and in the future.”

HG Capital has established a new holding board called Zenith Leasedrive Holdings Ltd.

Mark Philips, finance director at Leeds-based Zenith, will be chief financial officer of the new business.

Jon Walden, the industry veteran, will chair the holding board.

He has held many senior positions in the automotive industry, including the CEO role at Lex, the largest fleet manager with 270,000 vehicles.

The transaction represents a very profitable piece of business for the seller Morgan Stanley Global Private Equity, which acquired Zenith in September 2010 in an £85m deal.

It also led to another multi-million pound windfall for Andrew Cope, the outgoing chairman who as chief executive was the driving force behind the success of the company.

Zenith provides company cars, commercial vehicles and employee benefits such as salary sacrifice to mid to large corporations across the UK. It has around 27,000 funded vehicles, compared to around 9,000 at the time of the first buyout in 2003.

The company is thought to have gone through more MBOs than any other business in Yorkshire, if not Britain.

Martin Jenkins, the corporate financier and Deloitte senior partner, advised Zenith on all five management buyouts.