BT to sell fleet services arm
Published on Monday, 05 August 2019
BT has agreed to sell its Solihull-headquartered fleet management business, which employs almost 1,000 staff and has revenues of more than £200m.
Aurelius Equity Opportunities is to acquire end-to-end commercial fleet management operator BT Fleet Solutions for an undisclosed fee. The deal is expected to complete in the coming months.
BT Fleet Solutions offers a 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 more than 50 mobile technicians.
Established in 2002 it employs about 950 staff around the UK, and manages more than 80,000 vehicles for in excess of 26 customers. The latest published accounts for 2017/18 for BT Fleet Ltd show revenues of £209.5m.
The company is expected to be rebranded within the next 12 months.
Dirk Markus, group chief executive and chairman of Aurelius, said: "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, chief executive of BT’s Enterprise unit, added: "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).