HG CAPITAL takes majority stake in ZENITH

HgCapital has entered into a definitive agreement to acquire a majority ownership stake in the parent company of Zenith Vehicle Contracts Group Limited from Morgan Stanley Global Private Equity (MSPE). The transaction leverages a strong consolidation rationale for the acquirer (with a fleet of 27k vehicles), which recently integrated Leasedrive, a direct competitor within the fleet management sector. By securing a short, exclusive due diligence window via its pre-emptive bid, HgCapital finalized corporate documentation with minimal disruption to the target's day-to-day business operations. While MSPE fully divests its shareholding, Zenith’s Chairman Andrew Cope will step down from his executive post but will maintain a minor financial reinvestment in the newly formed corporate group. Zenith's established management team, which built the independent vehicle outsourcing platform over a 25-year history, will remain intact under the executive leadership of Tim Buchan and Mark Phillips. To support the brand's next growth phase, the corporate governance framework will be expanded to include HgCapital representatives Andrew Land, Nick Turner, and Simon Cottle on the group's Board of Directors. The transaction officially closed on February 28, 2014, following customary regulatory clearances.

It is worth noting that the fund Morgan Stanley Private Equity took control of Zenith through an LBO in 2010.