MORGAN STANLEY PRIVATE EQUITY 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.

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.