Hammonds LLP is advising the management and the sellers of Zenith Vehicle Contracts Group Limited on its latest transaction.
Morgan Stanley Private Equity plan to acquire a 60% stake in Zenith from funds advised by Barclays Private Equity and Zenith management. Zenith's management will retain a 40% stake in the company. Terms of the transaction were not disclosed.
Zenith is one of the UK's largest independent leasing, fleet management and vehicle outsourcing businesses. Founded in 1989 and headquartered in Leeds, the company manages over 27,000 vehicles on behalf of its corporate clients.
Brian Magnus, Head of MSPE in Europe, said, "We are delighted to invest in Zenith and to support its high calibre management team, which has successfully built the company over an extended period. We look forward to working closely with them to ensure its continued growth and success."
Andrew Cope, Chief Executive Officer of Zenith, said, "We are excited to welcome MSPE as our new partner and look forward to working closely on our shared vision developing the company's true potential in the coming years."
Steve O'Hare, Director at BPE, commented: "We are pleased to have had the opportunity to support Zenith since 2007, during which time the company has grown both organically and through acquisition. We believe this new ownership structure will support Zenith's continued growth prospects."
The transaction is subject to regulatory approval.
Corporate partner Jonathan Jones, who also heads up the Leeds office of Hammonds, led a team advising Zenith's management team. Jones has been advising Zenith for a number of years and has been involved in all of its previous three MBOs.
Jonathan Jones said, ""Zenith has once again reached a key milestone in its growth strategy. It is a leading player in a specialist market with very solid and ambitious plans for the future. I have no doubt the business will continue to thrive under its new management structure."
Also involved on the team from Hammonds were banking partner Richard Morton and corporate senior associates Jayne Aarons and Paul Mann as well as banking associate Andy Fordham.
Other legal advisors on the deal included Addleshaw Goddard (partner David Handy) who advised the banks who provided the funding (HSBC and the Royal Bank of Scotland) and Weil Gotshal & Manges LLP (Mark Soundy, Simon Burrows and Rupert Wall) who acted for Morgan Stanley Private Equity.
For further information contact:
Kath Paddison, Communications Manager, Hammonds LLP, on 0161 830 5289 or email: katherine.paddison@hammonds.com