Fri, 03 Jul 2015 | MBO/MBI
Kier Group's Fleet and Passenger Services (FPS) division has been sold through a management buy-out (MBO) for £17.9 million.
The division is set to remain under the control of its previous managers but ownership has been transferred thanks to the input of private equity firm Endless after Kier concluded that it would make sense to dispose of the business to allow a more specialist operator to take control.
FPS is to be renamed Essential Fleet Services and will continue to provide specialist vehicle contract leasing, as well as fleet management services to both public sector clients and Kier's own businesses working on local authority highways and utilities.
Haydn Mursell, chief executive at Kier, commented on the sale: “FPS was acquired as part of the May Gurney transaction. However, in light of our strict return on capital requirements, we concluded that it would be appropriate to dispose of FPS to a specialist operator which will be managed by the existing management team.”
Managing director Ray O'Toole added that the company is “delighted” to work with Endless as a new partner: “Endless was immediately aligned with the growth ambitions of the management team and the future for Essential feels very bright.”
Essential Fleet Services has agreed a five-year deal with Kier to see them continue to provide fleet services to its businesses for this period. However, both companies appear more positive about the fleet company's future after separating from Kier given that the business did not tie in with its core business.
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