Friday, November 22, 2024

Addison Lee sold to Singapore’s ComfortDelGro for £270m

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  • Addison Lee underwent a restructuring in efforts to survive the pandemic  

Iconic London taxi group Addison Lee will be sold to a Singapore-based multinational for £269.1million.

ComfortDelGro said on Wednesday it would buy the premium private hire, courier and black taxi provider, with its CityFleet Networks business taking on the 7,500 drivers and 5,000 vehicles from Addison Lee’s London-based network.

It follows a restructuring under Addison Lee chief executive Liam Griffin that helped the group to survive the Covid-19 pandemic before bouncing back to growth.

Sold: Iconic London taxi group Addison Lee to be acquired by Singapore-based multinational

Griffin, the son of the firm’s founder John, initially quit in 2018 after falling out with new bosses brought in by investor Carlyle. 

He then repurchased the company in 2020 for £125 million using his own money and cash from Cheyne Capital. 

Addison Lee’s most recently published Companies House accounts show the business made a pre-tax loss of £602,000 in the 12 months to 31 August 2023, versus a profit of around £2.8million the prior year.

Griffin, who along will remain with Addison Lee alongside ‘key’ management colleagues, said: ‘ComfortDelGro has demonstrated its deep knowledge of the business, and a clear understanding of our customers’ and drivers’ needs.

‘ComfortDelGro is a perfect complementary fit for us. They share our philosophy, vision, and ambition for the Addison Lee brand and bring significant international industry expertise to the business.’

The deal expands CityFleet Networks’ private hire and black taxi fleets elsewhere in the UK, including Liverpool, the Wirral, Chester and Aberdeen.

ComfortDelGro also owns Megabus among its transport brands

ComfortDelGro also owns Megabus among its transport brands 

The addition of Addison Lee will grow the group’s taxi and private hire network to more than 34,000 vehicles globally.

ComfortDelGro also provides pre-planned and on-demand ground transportation to businesses, as well as private and ride-share transfers to airports, bus and train stations and ports, through its recently acquired business, CMAC.

The Group also owns and operates Metroline buses and Westbus coaches in London, Adventure Travel buses and coaches in Wales, as well as the Megabus, Scottish Citylink and Irish Citylink inter-city coach services.

Group chief executive Cheng Siak Kian said: ‘Beyond expanding our footprint in the UK, this acquisition will enable us to use Addison Lee’s expertise to deepen and scale our premium point-to-point capability globally. It will also strengthen our overall point-to-point proposition, creating strong synergy with our existing businesses.’

Chairman Mark Greaves added: ‘We will use Addison Lee’s strong brand, customer base and reliable premium driver network to continue creating great journeys for our customers and the communities we serve – a commitment that we hold true across our businesses.

‘With 90 percent of their existing fleet already made up of cleaner energy vehicles, this will help accelerate our fleet transition journey.’

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