
ECI reaps 6.2x money in Tusker exit to Lloyds Banking Group
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).
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater