ALD Automotive and LeasePlan, two of the world’s largest fleet rental companies, announced on January 6 that they will combine forces to create a globally leading mobility company that will continue the industry’s digital transformation.
ALD has signed a memorandum of understanding to acquire 100% of LeasePlan from a consortium led by TDR Capital in a deal worth €4.9 billion. The operation will be funded through a cash and stock deal.
The combined companies will create an entity with 3.6 million cars under management. The deal is expected to close at the end of 2022, with ALD’s parent company, Societe Generale, owning 53% of “NewALD” and LeasePlan owning 30.75%.
ALD is a global mobility solutions provider with full-service rental and fleet management services in 43 countries. Its client base includes large corporations, small and medium enterprises (SMEs), professionals and private individuals.
LeasePlan, a fleet management company with a total of 1.8 million vehicles, offers Vehicles by Service, operating in 29 countries. The company is also committed to the transition to zero-emissions mobility and has set itself an ambitious target of achieving net-zero emissions from its funded fleet by 2030.
NewALD will create a major global mobility company positioned to drive further growth in mobility.
The proposed combination of ALD and LeasePlan into NewALD is expected to cross leverage the two companies’ additional capabilities, according to a news release. NewALD will be able to benefit from a rapidly growing market driven by strong fundamental megatrends, including:
- Go from ownership to user rights in every way: B2B, B2C and even B2E4
- The data-driven digital transformation of the mobile industry
- Transitioning towards zero emissions and sustainable mobility
Tim Albertsen, CEO of ALD, said: “Today marks the beginning of a new chapter in our history as the first step towards the creation of NewALD. With unprecedented speed, this proposed transaction is instrumental in creating a world leader in mobility. By combining the many strengths of ALD and LeasePlan, scaling, synergizing digitally, and creating a leading provider of sustainable mobility solutions, we will transform our industry and have best positioned to deliver better solutions and value propositions to our expanding customer base. This transaction will create multiple opportunities for the shared and talented management teams of both companies, across geographies, reinforcing our focus on sustainability with a clear path forward. for zero emissions and not least high shareholder returns over cycles. ”
Tex Gunning, CEO of LeasePlan, stated: “The combined business will be instrumental in transforming the auto industry from ownership to zero-emission mobility and subscription models. By partnering with ALD, we combine the best talent in the industry with the investment power needed to meet our customers’ next-generation mobility needs. From day one, NewALD will operate one of the largest fleets of electric vehicles and will continue to set the standard for ESG in the mobility industry. ”
This agreement will be a step change to help NewALD have long-term fleet growth of at least 6% annually after integration.