Addison Lee sold for £269m

CityFleet Networks – a subsidiary of ComfortDelGro – is buying London’s private hire, courier and black taxi provider, Addison Lee, for £269.1 million.

The acquisition, it says, will serve as a catalyst to deepen and scale ComfortDelGro’s premium point-to-point capability in the UK and globally. 

On completion of the deal, the 7,500 drivers and 5,000 vehicles of the Addison Lee’s London-based network will complement CityFleet Networks’ existing private hire and black taxi fleets elsewhere in the UK including Liverpool, the Wirral, Chester and Aberdeen.  

ComfortDelGro’s managing director and Group CEO, Cheng Siak Kian, said: “Addison Lee is an established leader in serving the differentiated premium segment in London.

“Beyond expanding our footprint in the UK, this acquisition will enable us to use Addison Lee’s expertise to deepen and scale our premium point-to-point capability globally.

“It will also strengthen our overall point-to-point proposition, creating strong synergy with our existing businesses.” 

In addition to operating CityFleet Networks in several locations across the UK, ComfortDelGro provides pre-planned and on-demand ground transportation to businesses, as well as private and ride-share transfers to airports, bus and train stations and ports through its recently acquired business, CMAC.

The Group also owns and operates Metroline buses and Westbus coaches in London, Adventure Travel buses and coaches in Wales, as well as the Megabus, Scottish Citylink and Irish Citylink inter-city coach services.  

Liam Griffin (pictured), CEO of Addison Lee, said: “Over the last four years, ComfortDelGro has demonstrated its deep knowledge of the business, and a clear understanding of our customers’ and drivers’ needs.

“This, alongside the strength and heritage of the Addison Lee brand, has positioned us perfectly for further expansion into the premium segment. ComfortDelGro is a perfect complementary fit for us.

“They share our philosophy, vision, and ambition for the Addison Lee brand and bring significant international industry expertise to the business.” 

Prior to the acquisition, Griffin and his team led a consortium that restructured the business and ensured it successfully weathered the pandemic before delivering strong growth and a return to profit.

He, along with the current key management will remain at the firm following the acquisition to drive the next phase of its growth. 

ComfortDelGro chairman, Mark Greaves, said: “This acquisition is in line with our strategy to expand the Group’s point-to-point mobility portfolio.

“We will use Addison Lee’s strong brand, customer base and reliable premium driver network to continue creating great journeys for our customers and the communities we serve – a commitment that we hold true across our businesses.

“With 90% of their existing fleet already made up of cleaner energy vehicles, this will help accelerate our fleet transition journey.” 

The addition of Addison Lee will grow the Group’s taxi and private hire network to more than 34,000 vehicles globally. 

Jefferies International acted as Addison Lee’s exclusive financial advisor on the transaction, with Linklaters LLP acting as legal advisor.