AURELIUS Equity Opportunities SE & Co. KGaA (ISIN DE000A0JK2A8) (“AURELIUS”) is to acquire industry leading end-to-end commercial fleet management operator, BT Fleet Solutions from BT Group Plc. Both parties have agreed not to disclose the purchase price and the transaction is due to complete in H2 2019.
Headquartered in Solihull, BT Fleet Solutions offers a comprehensive suite of fleet management services across all stages of the vehicle life cycle, through its network of 65 in-house garages, 500 partner facilities and 50+ mobile technicians. Established in 2002, BT Fleet Solutions employs around 950 staff around the UK, and manages more than 80,000 vehicles for over 26 blue chip customers across diversified industries. The latest published statutory accounts for 2017/18 for BT Fleet Ltd show revenues of £209.5m and its industry leading position leaves it well placed to capture the high levels of growth available in the UK’s fleet management market.
The divestment of BT Fleet Solutions aligns with BT’s ongoing transformation programme and strategy of focusing on converged connectivity and services, with further investments in both its fixed and mobile networks via programmes such as full fibre and 5G.
This deal represents another example of AURELIUS’ specialism in complex divestment processes. In the coming months, AURELIUS’ operational task force will support BT Fleet Solutions in executing a carve out from BT, ensuring a seamless continuation of the company’s day to day operations, whilst working to position the business as an independent entity. The company is expected to be rebranded within the next 12 months.
Going forward, AURELIUS will work with BT Fleet Solutions’ existing management team to maintain its market-leading position and drive growth for the business. This will be delivered through a range of initiatives, including operational improvement, investment in key business areas – such as heavy goods vehicles, accident management and vehicle funding - and the continued delivery of excellent customer service to clients, including former parent company, BT, and its legally separate Openreach business. AURELIUS will also work with management to identify customer and product expansion opportunities, both organically and through acquisition.
Dr. Dirk Markus, Group-CEO and Chairman of the Executive Board of AURELIUS, commented: “This acquisition is a further example of AURELIUS’ specialism in acquiring non-core divisions that have been carved out of large corporates, and are in need of operational support to transform them into standalone, sustainable organisations. BT Fleet Solutions is a strong business with a high calibre customer base. We look forward to working with management to ensure a smooth transition in the coming months, positioning the company as an independent entity that is ready to capture the significant growth opportunity available in the UK market.
“This is another exciting development for AURELIUS this year, following our recent sale of Solidus Solutions, our largest exit to date. This deal is a demonstration of our continued interest in the UK market, which presents a number of compelling opportunities for us as a result of the ongoing economic and political uncertainty that has arisen out of Brexit.”
Gerry McQuade, CEO of BT’s Enterprise unit, said: “The acquisition of BT Fleet Solutions by Aurelius is an exciting and significant step forward in its development and will deliver for its customers, people and the BT Group. Over the past five years, our Fleet business has grown into a multi-award winning market leader in the sector. The unrivalled expertise and experience of its people in managing and maintaining complex fleets has been key to this success.
“With BT’s renewed focus on investing in the best fixed and mobile networks in the UK, and with BT Fleet Solutions well positioned to achieve further growth, the time is right for the business to find a new home. AURELIUS is ideally placed to support the next phase of BT Fleet Solutions’ development and deliver new services to its customers. I’d like to thank our colleagues in BT Fleet Solutions for all they have done for the business and the wider BT Group and wish them every success for the future.”
AURELIUS was advised by Deloitte (M&A), Mayer Brown (Legal) and KPMG (Tax). BT was advised on this transaction by Lazard (M&A) and Bryan Cave Leighton Paisner (Legal).
