A consortium led by former CEO of Addison Lee Group, Liam Griffin, and Cheyne Capital’s Strategic Value Credit (SVC) business, has completed the buy-out of London’s largest taxi operator. Griffin and Cheyne SVC’s combined holdings give them a majority stake in the business, in a deal that sees at least GBP41 million of new investment flow into the firm.
The consortium was attracted by Addison Lee’s strong core revenues, which have remained resilient over the last five years, and by the firm’s enduring, pre-eminent position as London’s most trusted car service.
Griffin returns to his former role as CEO, having been non-executive chairman. He will be joined by other key members of the previous management team. Together they will build on the strength of the underlying business and concentrate on consolidating its position in the core London-centric market.
Under the terms of the deal, part of the existing GBP230 million debt will be converted to equity with the balance being written down. Addison Lee’s US operation has been sold to RMA Worldwide Chauffeured Transportation and the business will now continue to operate in North America as a partner under the Addison Lee brand.
Commenting on the acquisition, Liam Griffin, says: “This deal represents an exciting new chapter for the business as we look to build on our 45-year heritage and retain our position as London’s most trusted car service. I am confident that with Cheyne’s SVC team on board, we have the right partner for long-term success and we will continue to invest in our technology, vehicles and drivers so that the Addison Lee experience remains synonymous with the highest levels of quality, reliability and flexibility.
“Given the current situation, our immediate focus is to ensure we support drivers so they can continue to provide a safe and reliable travel option to get key workers and essential goods to where they need to be. We are committed to playing our part in helping the government in its efforts to manage the situation.”
Anthony Robertson, CIO of Cheyne Strategic Value Credit, says: “We’re very pleased to be investing in the future of Addison Lee. The new group structure will enable the business to focus on its core UK market, and we will build on the strength of the underlying business by further enhancing the customer experience and supporting the driver community. We are confident that these measures will allow us to further consolidate Addison Lee’s dominant position in the corporate sector and deliver enhanced profitability and cash flow.”
