Hitachi Capital Vehicle Solutions has bought
the business and assets of UK rental company Newtown Vehicle
Rentals which went into administration on December 2.
The acquired portfolio comprises 7,000 trucks
and light commercial vehicles on rental and contract hire.
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Dominic Wong, joint administrator from
Deloitte, said: “NVR has historically been a profitable and growing
business with robust revenues and a high quality customer base. The
limited funding available in the recent economic environment for
new and replacement vehicles caused the fleet to age, incurring
greater maintenance costs which impacted both profitability and
cash flow.”
The sale came following a failed attempt by
NVR’s management and lenders to restructure the business over the
past 21 months.
Hitachi Capital Vehicle Solutions chief
executive Simon Oliphant said: “The acquisition of the NVR
portfolio demonstrates our commitment to the vehicle leasing market
and supports our strategic objective of growing our commercial
vehicle business. Our focus for the next few weeks will be ensuring
that customers experience minimal disruption and that the retained
staff commit to achieving this.”
Of NVR’s 131 employees, 98 left the business
on agreed terms prior to the sale and 33 employees have taken up
new contracts with Hitachi Capital.
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By GlobalDataJon Lawes, managing director of Hitachi
Capital’s commercial vehicle division, led the acquisition
team.
