Investor Consortium to Acquire LeasePlan Corp.
Photo courtesy of LeasePlan.
The Dutch parent of LeasePlan USA, which is one of the largest global fleet management companies, will be sold to a consortium of investors including pension funds in The Netherlands, Denmark, and Singapore.
The sale of LeasePlan Corp.'s holding company, Global Mobility Holding, comes three months after the dissolution of a prior sale attempt by holding company owners Volkswagen A.G. and German banker Friedrich von Metzler who each held a 50-percent stake.
On July 23, LeasePlan Corp. N.V. announced terms of the sale for $4.05 billion (3.7 billion euro). Six investors will acquire LeasePlan, including the Abu Dhabi Investment Authority (ADIA), Danish pension fund ATP, Singapore-based investment firm GIC, the Merchant Banking Division of Goldman Sachs, Dutch pension fund PGGM, and London-based private equity firm TDR Capital.
The consortium plans to finance the acquisition with an equity investment of half the purchase price and a cash-pay debt facility of $1.7 billion (1.55 billion euro).
The consortium plans to support LeasePlan's "existing long-term growth strategy and growth ambitions," according to a release. The investors will also maintain a diversified funding strategy.
LeasePlan USA welcomed the sale as a way to continue its growth trajectory.
"I would like to emphasize what is said in the press release," said Mike Pitcher, LeasePlan USA's president and chief executive. "This is an exciting development for LeasePlan, one that allows us to continue our growth strategy with our clients as the focus of our business."
The consortium will bring to bear its financial services sector experience, additional strategic experience as well as a strong track record of successful long-term investing, according to the release.
"This consortium of long-term oriented investors recognize the strengths of LeasePlan as a business, as well as our long-term strategy," said Jon Toups, LeasePlan USA's chief commercial officer. "We look forward to continuing business as usual."
The deal, which is expected to close by the end of 2015, must still gain approvals by European regulators and anti-trust authorities.
In 2014, LeasePlan Corp. increased assets by 3 percent to $21.6 billion (19.7 bilion euro) and net profit by 14 percent to $409 million (372 million euro). The total number of vehicles under management increased to 1.42 million from 1.37 million at the end of 2013. LeasePlan operates in 32 countries.
Read more about the consortium members in the full release.