Morgan Stanley and Barclays Private Equity ("BPE") announced on August 13 that Morgan Stanley Private Equity ("MSPE") has agreed to acquire a 60 per cent stake in Zenith Vehicle Contracts Group Limited ("Zenith"), a provider of vehicle outsourcing and management services to the UK corporate sector, from funds advised by Barclays Private Equity and Zenith management.
Zenith's management will retain a 40 per cent stake in the company, Morgan Stanley informed.
"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. This sale delivers a strong return to our investors of over 2.7 times the original investment. We believe this new ownership structure will support Zenith's continued growth prospects."
The transaction is subject to regulatory approval.
This transaction represents the sixth investment for Morgan Stanley Capital Partners V, the most recent fund raised by MSPE. Earlier deals include investments in McKechnie Aerospace, Tops Markets, Learning Care Group, Triana Energy and Breitenfeld.