Case study

Zenith: Driving growth through M&A

Long-term support and minority investments for leasing business creates sustainable growth.

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Sector
  • Support services

Zenith is one of the UK's leading independent leasing, fleet management and vehicle outsourcing provider.

Deal type
  • Management buyout
Exit type
  • Private equity sale
Exit date

15/01/2017

Exit value

£750m

Re-investment date

06/12/2013

LDC Region

Zenith is one of the UK’s leading independent leasing, fleet management and vehicle outsourcing providers.

The firm is a result of a merger between Leasedrive and Zenith Vehicle Contracts, who came together to form Zenith in 2014.

Driving growth

In 2008, LDC backed the management buyout of Leasedrive and, during the course of a five-year investment period, worked in close partnership with the management team to implement a strategic organic growth plan.

This plan involved the expansion of Leasedrive’s contract hire customer base and helping the management to identify and fulfil the completion of complementary acquisitions.

In 2010, the business acquired Masterlease UK, also demonstrating impressive organic growth, and secured a major contract with Mercedes Benz Financial Services.

During the course of LDC’s partnership, Leasedrive achieved substantial sales and profit growth of 200 per cent.

Merging for success

In 2013, LDC completed its exit from Leasedrive and subsequently re-invested in the business, retaining an interest as part of a new deal with HgCapital, which acquired a controlling stake.

Following the merger in 2014, Zenith continued to grow and in 2016 was ranked 33rd in The Sunday Times Top Track 250.

In January 2017, HgCapital agreed the sale of Zenith to Bridgepoint, in a transaction totalling £750m. The deal also marked an exit for LDC, which had retained a minority stake in the business in 2013.