March 06, 2014
Morgan Stanley Global Private Equity Completes the Sale of Zenith
March 06, 2014
LONDON — Mar 6, 2014
Morgan Stanley Global Private Equity (“MSPE”) today announced the recent completion of the sale of its majority interest in Accelerate Acquisitions Limited, the parent company of Zenith, to HgCapital, a UK-based private equity fund.
MSPE made its investment in Accelerate Acquisitions Limited in September 2010 on the back of an extensive two-year review of the UK fleet management sector.
Jean-Marc Jabre, Managing Director of MSPE, commented “Our focus on this sector gave us a keen appreciation for the growth potential of an industry undergoing a significant transformation. Given Zenith’s proven track record, innovative approach to business and superior customer service, we proactively approached and partnered with a management team who shared our ambition to grow profits and market share significantly.”
During the investment period, there have been notable changes in the business. These initiatives include attracting seasoned executives in Zenith’s business development and commercial functions, improving the supply chain, investing in systems and infrastructure, and developing an innovative securitization funding strategy.
James Howland, Managing Director and Operating Partner of MSPE, commented “We have been very focused on driving value creation and are delighted with the way that the business developed during our investment period. We are grateful to the management team and wish to thank Andrew Cope, Tim Buchan and Mark Phillips for their leadership.”
Whilst the terms of the transaction are not disclosed, the sale delivers 3.8x the original cost to investors.
About Morgan Stanley Global Private Equity
Morgan Stanley Global Private Equity, part of Morgan Stanley Investment Management, makes private equity and equity-related investments in North America and Europe. Morgan Stanley Global Private Equity utilizes Morgan Stanley's vast resources, including the Firm's global franchise and relationships with leading corporate management teams and financial sponsors, to source attractive opportunities for its investment funds. Morgan Stanley's roots in private equity investing date back to 1985 with the Morgan Stanley Capital Partners private equity funds. To date, Morgan Stanley Global Private Equity and its affiliated funds have invested over $6.7 billion of equity across a broad spectrum of industries. For further information about Morgan Stanley Global Private Equity, please visit www.morganstanley.com/im/capitalpartners.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 43 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.
Zenith is the leading independent fleet management and outsourcing provider to the UK corporate vehicle market. The company was awarded the Fleet News ‘Leasing Company of the Year’ Award for the past two years, and is the only fleet management company to win and retain this prestigious award. Zenith was recently ranked 12th in the FN50’s list of the UK’s top 50 contract hire companies, and has a risk fleet of over 27,000 vehicles. The company is widely regarded as having industry leading IT systems, and Pulse, its online fleet diagnostic platform, has won many accolades including the Fleet News ‘Best New Product or Service’ Award and the BusinessCar Techies Award.