BRIDGEPOINT takes majority stake in ZENITH

HgCapital has entered into a definitive agreement to sell its entire majority shareholding in Zenith to private equity firm Bridgepoint. This divestment follows a highly successful investment cycle initiated by HgCapital's acquisition of Leasedrive in December 2013 and its subsequent strategic merger with Zenith in February 2014, a corporate consolidation engineered to capture substantial economies of scale. Under the new ownership structure, Bridgepoint will assume full control of the business, partner with the incumbent management team, and establish a new institutional framework to fund the company's next phase of commercial expansion. The acquisition provides to Bridgepoint operational control over a best-in-class vehicle outsourcing asset that features an unbroken track record of growth and a resilient business model, with future revenues highly predictable due to long-term commercial contract lock-ins. The post-closing corporate strategy will be led by the existing executive team under CEO Tim Buchan, focusing on sustaining double-digit compounding growth through continuous capital allocation toward proprietary system developments, enhanced customer service frameworks, and targeted international M&A and acquisition activity. The transaction was signed in January 2017 and is subject to customary closing conditions.

In the past, the company had already been the subject of several LBOs, notably led by Morgan Stanley Private Equity in 2010 and Hg Capital in 2014. This succession of buyouts highlights the strong attractiveness of the company's business model.