A consortium led by Liam Griffin and Cheyne Capital Strategic Value Credit (SVC) has completed the acquisition of troubled private hire giant Addison Lee from the Carlyle Group.
Griffin, son of founder John Griffin, resumes his old role as CEO of the company, and he is likely to be joined by other key members of the previous management team.
The deal will recapitalise Addison Lee has been recapitalised by at least £41 million of new investment. Cheyne Capital becomes the largest shareholder in the business, and along with Griffin, the two parties have a combined majority share.
Under the terms of the deal, part of Addison Lee’s existing £230m debt will be converted to equity with the balance being written down. Meanwhile the Addison Lee US operation has been sold to RMA Worldwide Chauffeured Transportation and the business will now continue to operate in North America as a partner under the Addison Lee brand.
Liam Griffin said in a statement: “This deal represents an exciting new chapter for the business as we look to build on our 45-year heritage and retain our position as London’s most trusted car service. I am confident that with Cheyne’s SVC team on board, we have the right partner for long-term success and we will continue to invest in our technology, vehicles and drivers so that the Addison Lee experience remains synonymous with the highest levels of quality, reliability and flexibility.”
He added: “Given the current situation, our immediate focus is to ensure we support drivers so they can continue to provide a safe and reliable travel option to get key workers and essential goods to where they need to be. We are committed to playing our part in helping the government in its efforts to manage the situation.”
Anthony Robertson, CIO of Cheyne Strategic Value Credit, said: “The new group structure will enable the business to focus on its core UK market, and we will build on the strength of the underlying business by further enhancing the customer experience and supporting the driver community. We are confident that these measures will allow us to further consolidate Addison Lee’s dominant position in the corporate sector and deliver enhanced profitability and cash flow.”