Sale of Zenith ‘not imminent’, says CEO

Zenith says it is looking at a “number of corporate finance options” after it was reportedly put up for sale for £700 million.

The leasing company, which operates a risk fleet in excess of 50,000 vehicles, has been working with a number of advisers and has appointed Evercore to take the lead role.

Chief executive officer Tim Buchan said: “Zenith continues to enjoy very strong trading conditions.

“Strong organic growth has been driven by our continued investment in innovation and our relentless focus on client service. This has been rewarded by significant client wins and our first pan-European appointment since the establishment of our Auto Alliance partnerships.

“Looking forward, there are a number of corporate finance options available to Zenith, including a refinancing, given the market’s strong and longstanding support for the business.”

However, Buchan said: “This should not be interpreted to mean a transaction is imminent. As a private equity owned asset, it is generally considered good practice to make these adviser appointments early in a business’s ownership cycle to maximise the benefits of their expertise, significantly in advance of any event.”

HG Capital signed an agreement to acquire a majority stake holding in the parent company of Zenith Vehicle Contracts Group from Morgan Stanley Global Private Equity (MSPE) in 2014.

A 60% stake in the top 20 leasing company was acquired by MSPE in August 2010.

HG Capital bought Zenith just a few months after buying Leasedrive and brought both businesses under the single brand of Zenith earlier this year.