Dawsongroup sold to global investment firm

Global investment firm KKR has entered into a binding agreement with shareholders to buy asset leasing business Dawsongroup. 

The new ownership says it will support Dawsongroup’s ambitious growth strategy and fleet transition in collaboration with existing management team.

The acquisition, for an undisclosed sum, is part of KKR’s global climate strategy, dedicated to scaling net-zero solutions and transitioning and decarbonising higher emitting assets, which aligns with Dawsongroup’s long-term sustainability-led ambitions.

Headquartered in Milton Keynes, Dawsongroup has a diversified customer base and employs more than 1,150 employees across 11 countries. 

Since it was formed in 1935, Dawsongroup has grown to be a major player in asset leasing, including vehicles and refrigerated boxes, with a business model that includes the customisation of assets to customer specification as well as maintenance and repairs.

It has also developed a ‘Smarter Asset Strategy’ to, it says, enable businesses to cost-effectively transition to net zero.

Last year, it posted a record performance with Group EBITDA of around £250 million and, under new ownership, the management says it will build on this strong platform to expand the markets it serves throughout the entire supply chain.

Stephen Miller, Dawsongroup’s CEO, said: “KKR’s support will accelerate the launch of our sustainable growth strategy by continuing to deliver market-leading services for our customers in the UK, maintaining our EBITDA margin profile and providing a real opportunity to expand our unique offering internationally. 

“We are delighted to have the backing of KKR as we enter the next phase of our development and effectively contribute to our customers’ transition to zero emissions.”

The Dawson family has controlled the company for more than 90 years. Joining forces with KKR will, it says, significantly accelerate the decarbonisation of vehicle and asset leasing solutions. 

KKR will also work with Dawsongroup to implement an employee ownership programme, providing Dawsongroup employees with the opportunity to directly participate in the company’s future success.

Vincent Policard, partner and co-head of European Infrastructure at KKR, said: “As one of the largest independent lessors of vehicles and temperature-controlled solutions in the UK, Dawsongroup is a key player in the decarbonisation of mobility. 

“We see a significant opportunity to accelerate the electrification of Dawsongroup’s fleet, in support of the Dawsongroup management team’s focus on sustainable solutions and aligned with KKR’s commitment to advancing the transition to a low-carbon future. 

“By deploying our global expertise and network, we will help Dawsongroup drive sustainable growth, expand into new geographies, and contribute to the broader shift toward cleaner, more resilient infrastructure.”

With more than 15 years of experience in infrastructure investing, KKR has deep experience in renewable energy and climate-related investments and has invested more than $21 billion in this sector from its infrastructure platform alone. 

To date, KKR has made three investments from its Global Climate strategy, including in Zenobē, a UK-based provider in transport electrification and battery storage solutions.

It has been investing in the UK for more than two decades, having deployed in excess of $24bn in equity across all investment platforms, including more than $5bn in sustainability-related investments over the past three years, such as Smart Metering Systems, Citation, ERM, John Laing and Viridor.

Freya Dawson said: “On behalf of the Dawson family, I am extremely proud of Dawsongroup’s achievements to date and we are highly supportive of this strategic partnership with KKR. 

“With the Dawson family’s backing and long-standing support from employees, the Group has evolved into the innovative asset leasing platform it is today. 

“Combining Dawsongroup’s highly experienced management team with the knowledge and experience of the KKR team, we believe the impressive trajectory achieved to date can accelerate even further and we look forward to its future success.”

Fleet News reported last November, how Peter Dawson, the executive chairman of Dawsongroup, had passed away after suffering a short illness. 

Herbert Smith Freehills advised Dawsongroup on the sale. The team was led by partner Alan Montgomery and of counsel Shaun Williamson.  

They were supported by partners Casey Dalton, Veronica Roberts, Gabrielle Wong and Marina Reason, senior associates Faria Ali, Clemence Barraud, Chelsea Fish, Chris Hurn and Eamon McCarthy-Keen, and associates Ananya Bajpai, Lucy Kelly, Georgie Crawford, Toni Mathers and Louis Austin.

The transaction is subject to the receipt of regulatory approvals.