Portfolio Header1

Finding an undermanaged ‘corporate orphan’

LeasePlan

LeasePlan is the world’s leading fleet management and driver mobility company, with operations in 33 countries and a fleet of over 1.6 million vehicles under management.

Description

Headquartered in the Netherlands, LeasePlan Corporation (“LeasePlan”) is the world’s leading fleet management and driver mobility company. Since its inception in 1963, LeasePlan has been at the forefront of market developments and the company now employs over 7,300 staff in operations across 33 countries.

LeasePlan’s full-service offering consists of financing and operational fleet management services to meet the needs of a diverse client base, including large multinational companies, public sector entities and SMEs. Its fleet is comprised of a diverse mix of vehicles from a variety of the largest global manufacturers.

LeasePlan is also well positioned to capitalise on the on-going trends in the automotive industry through its suite of innovative mobility solutions, such as corporate car sharing programmes and integrated multi-modal transport schemes.

Transaction

During 2013, TDR identified LeasePlan as an attractive acquisition target as part of a thematic origination review within the financial services space. LeasePlan appeared to be an undermanaged ‘corporate orphan’ within the Volkswagen Group (“VW”), with a market-leading position in an attractive sector that benefits from high quality asset backing and recurring contractual revenue streams.

During 2014, we assembled a consortium of leading global investors with the financial capacity and credentials needed to acquire a regulated financial institution of LeasePlan’s size. Before formally approaching VW, we spent months designing a bespoke transaction structure to address the many complexities involved in extracting the business from VW’s ownership.

These efforts were rewarded when VW agreed to engage with us and after months of complex negotiations we agreed to acquire LeasePlan in July 2015, ultimately completing the transaction in March 2016 after having secured regulatory approval from the ECB.

Further information

Date of investment: March 2016
Deal type: Private sale
Status: Unrealised

For further information, email:  leaseplan@tdrcapital.com
Visit the company’s website at:  leaseplan.com