ALD Automotive has signed a memorandum of understanding (MoU) to acquire 100% of LeasePlan for a total sum of €4.9bn.
The proposed combination of ALD and LeasePlan to create NewALD will look to leverage the capabilities that each company offers. In a statement, ALD said the merger would benefit from a fast-growing market driven by trends, including the:
– Shift from ownership to usership on all fronts: B2B, B2C and even B2E4
– Data-driven digital transformation of the mobility industry
– Transition towards zero-emission and sustainable mobility
This deal would be a step-change with the aim for long term fleet growth of at least 6% per annum post-integration. NewALD would target an improvement in cost-to-income ratio to c.45% by 2025. Following the MoU and completion, the transaction is expected to generate operational and procurement synergies of EUR 380 million p.a. before tax.
Tim Albertsen, chief executive of ALD, said: “By combining the multiple strengths of ALD and LeasePlan, gaining size, joining forces in digital and creating a leading provider of sustainable mobility solutions, we would transform our industry and be best positioned to deliver even better solutions and value propositions to our enlarged client base.
“This transaction would create multiple opportunities to the joint management teams and talents of both companies, across geographies, underpin our focus on sustainability with a clear path to zero emissions mobility and not least deliver strong shareholder returns over the cycles. We are all very excited about the prospect of being part of this new venture.”
Tex Gunning, chief executive of LeasePlan, added: “The combined business would be instrumental in moving the automotive industry from ownership to subscription models and zero-emission mobility. By joining forces with ALD, we combine the best talents in the industry with the investment power needed to meet the next generation mobility needs of our customers.”