Addison Lee braced for buyer interest as owners explore possibility of sale

Addison Lee’s owners have instructed a major investment bank to explore the possibility of selling the business.

Addison Lee is owned by Cheyne Capital and Liam Griffin, and the two parties are working with the investment bank Jefferies on a potential sale of the London minicab and courier firm.

Cheyne Capital and Liam Griffin (pictured), son of Addison Lee founder John Griffin, regained control of the business in 2020 from previous owner, private equity investor Carlisle Group. Carlisle had acquired Addison Lee from the Griffin family in 2013 for a reported £300 million.

But Carlisle Group struggled with the business, and in early 2020 Addison Lee was rescued by a group of eight banks, which injected £45m into the company and refinances £100m of the company’s £250m of debt. The deal removed former owner Carlyle Group from the business. Liam Griffin and Cheyne Capital then stepped in to take over the business.

Since then, Addison Lee has acquired London black cab operator ComCab in July 2021 and London private hire rival Green Tomato Cars in June 2023.

Addison Lee posted strong financial results for the year ending August 31, 2023, with pre-tax profits up 41% on the previous year. Addison Lee achieved an Adjusted EBITDA of £27.4 million for the year, on a turnover of £224.8m. However Griffin has also said that post-pandemic working practices have adversely affected Addison Lee’s business, which relies heavily on corporate account work.

Over the past two years Addison Lee has also started a major programme of upgrading its fleet, initially to an all-electric fleet, with 1,000 Volkswagen ID.4s being purchased. But more recently this plan has been wound back due to inadequate charging infrastructure and vehicle availability, with Addison Lee buying large numbers of plug-in hybrid VW Multivans and Audi A6s.

Putting Addison Lee on the market is likely to prompt considerable interest from companies that are looking to consolidate the UK private hire sector. Major groups such as Veezu and Take Me have been developing national brands, but have steered clear of the highly competitive London market.

For these companies, the availability of a market-leader with a large, established fleet and corporate client base could provide a ready-made way into the London market. Addison Lee, founded in 1975, transports about 7 million people in London each year.

According to sources close to both companies, Take Me and Veezu have made enquiries about Addison Lee, though no formal discussions have taken place. Indeed, there is no guarantee that the discussions will lead to a sale, according to sources close to the discussions. Addison Lee has not commented on the situation.