ECI reaps 6.2x money in Tusker exit to Lloyds Banking Group

Wahida Ahmed
22 February 2023

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ECI Partners has sold UK-based Tusker, low emission vehicle leasing company, to Lloyds Banking Group generating a return of 6.2x on investment.

The deal values the company at around GBP 300m, according to a press release.

ECI acquired the business in 2015 in a secondary buyout from Smedvig Capital. The GP invested through ECI 10, which closed on its hard-cap of GBP 500m in 2014.

Under ECI's ownership, Tusker focused on green initiatives and was an early member of the EV100, a consortium of companies aiming for a zero-emission future and have committed that their fleet will be fully electric by 2030.

In a press release, Nick Williams, managing director transport, Lloyds Banking Group, said that the acquisition is in line with the bank's 2022 strategy to grow its involvement in vehicle leasing at a time when the transition to sustainable vehicles is important for its customers.

Lloyds previously invested in a similar business, Lex Autolease, a UK-based vehicle management and leasing company. The addition of Tusker will enable the bank to offer its products and services to more customers, allowing them to provide competitive benefits packages while helping them transition to net-zero.

Tusker benefits from the growing size of eligible salary sacrifice employees, which is now around 5 million, according to the release. It plans to grow its electric fleet under Lloyds ownership.

ECI is investing through ECI 11, which held a held a first and final close on its hard-cap of GBP 700m in July 2018, according to Unquote Data. The GP is reportedly exploring an exit from UK-based 4ways, a telediagnostics company, as reported by Mergermarket.

Company
Based in Watford, Tusker is a carbon-neutral company that employs 250 staff. Tusker provides electric vehicles and ultra-low emission vehicles through salary sacrifice schemes. It serves customers across the UK ranging from SMEs to public and private sectors. Having launched its first care benefit scheme in 2008, Tusker now supports over 1,300 companies.

People
ECI Partners – Paul McCreadie (partner).
Lloyds Banking Group – Nick Williams (managing director transport).
Tusker – Paul Gilshan (CEO).

Advisers
Vendor – Evercore (corporate finance); Squire Patton Boggs (legal); EY (financial due diligence).