Addison Lee acquired by consortium of investors
Fri, 27 Mar 2020 | BUSINESS SALE
Addison Lee Group, London’s biggest private care hire operator, has been acquired by a consortium of investors led by its former director Liam Griffin and Cheyne Capital. Addison Lee’s former owner, The Carlyle Group, reached an agreement to sell the company last month.
The long-term funding deal will see the company receive at least £41 million of new investment, while a portion of its existing £230 million debt will be converted into equity, with the balance written down.
Through the acquisition, Cheyne Capital will become Addison Lee Group’s largest shareholder, while Liam Griffin, who was previously a non-executive director and shareholder at the company, returns as CEO, replacing the outgoing Andy Boland, who has held the post for the last four and a half years.
A spokesperson for the company said regarding the investment of new capital into the business: “This will provide the business with additional funding and an appropriate capital structure to enable further growth, investment and support cash generation”.
Addison Lee Group registered revenue of close to £390 million in 2019, an increase from £225 million for year ending August 2013, the year it was taken over by The Carlyle Group.
However, the group’s reported losses also increased last year, jumping to £39 million in 2019 from £20.8 million the year before, as it felt the strain of increased competition in the ride-sharing market.
Addison Lee has said that the new consortium will be focused on consolidating its position in the core London-centric market.