Volkswagen, Metzler sell LeasePlan for 3.7 billion euro

The consortium includes United Kingdom buyout firm TDR Capital LLP, Dutch pension fund manager PGGM, Danish pension fund ATP, Singaporean sovereign wealth fund GIC, a subsidiary of the Abu Dhabi Investment Authority and the Merchant Banking Division of Goldman Sachs.

LeasePlan is now represented in 32 countries throughout the world, has a workforce of more than 6,800 people and about 1.5 million vehicles under contract.

Hans Dieter Pötsch, CFO of Volkswagen Aktiengesellschaft, said: “Since Volkswagen acquired its stake in LeasePlan in 2004, the investment has developed positively”. “With the expansion of our fleet management activities at Volkswagen Financial services, the time has come for our idea to transfer LeasePlan to new investors”, the group said. It made a net profit of 372 million euros in 2014.

Volkswagen is aiming to make 5 billion euros of savings a year by 2017 at its namesake passenger auto brand to close a profitability gap with rivals such as Toyota.

VW and Metzler, a private German bank, each hold 50 percent of LeasePlan through Global Mobility Holding.

On behalf of the consortium, PGGM said LeasePlan offered an attractive long-term investment opportunity. “The Consortium looks forward to supporting the management team as they focus on growing the business”. None of the debt raised by the Investors would be borrowed by LeasePlan and the company would not be responsible for the repayment of such debt.

The UK’s current number two leasing company Leaseplan has been bought by what’s been described as “a consortium of long-term investors” in a deal worth?3.7bn (£2.6bn). Vahid Daemi will continue to lead the organisation as CEO and chairman of the managing board. The transaction has to be approved by the relevant regulatory and anti-trust authorities including the European Central Bank in consultation with the Dutch Central Bank.

VW said the transaction should be completed by the end of the year, subject to the necessary approvals.