ComfortDelGro Corporation has announced that its wholly-owned subsidiary, CityFleet Networks, has acquired Addison Lee for GBP269.1 million ($461.2 million), according to an Oct 23 release.
According to the group, Addison Lee is currently London’s leading premium private hire, courier and black taxi provider. Jefferies was the exclusive adviser to Addison Lee for this transaction.
The group adds that the acquisition will “serve as a catalyst for ComfortDelGro C52 ’s expansion into an attractive premium mobility market, strengthening its overall point-to-point proposition in the UK and globally”.
Upon completion, Addison Lee’s 7,500 drivers and 5,000 vehicles are expected to join CityFleet Networks’ existing private hire and black taxi fleets in the UK. The addition is expected to grow the group’s taxi and private hire network to more than 34,000 vehicles globally.
Cheng Siak Kian, CEO of ComfortDelGro, says: “Beyond expanding our footprint in the UK, this acquisition will enable us to leverage Addison Lee’s expertise to deepen and scale our premium point-to-point capability globally.”
In addition to operating CityFleet Networks in several locations across the UK, ComfortDelGro also currently 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.
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Liam Griffin, CEO of Addison Lee, says: “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 market. ComfortDelGro is a perfect fit for us.”
Mark Greaves, chairman of ComfortDelGro, adds: “We will leverage 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.”
Investment bank Jefferies was the exclusive financial advisor to Addison Lee on its sale
Shares in ComfortDelGro closed 1 cent lower, or down 0.68%, at $1.46 on Oct 23.
