The ALD-LeasePlan deal will put 3.6 million vehicles under the same management.  -  File photo: ALD Automotive

The ALD-LeasePlan deal will put 3.6 million vehicles under the same management.

File photo: ALD Automotive

ALD Automotive and LeasePlan, two of the world’s largest fleet leasing companies, announced Jan. 6 they will combine forces to create a leading global mobility player that would further the digital transformation of the industry.

ALD has signed a memorandum of understanding to acquire 100% of LeasePlan from a consortium led by TDR Capital in a deal valued at 4.9 billion Euros. The acqusition would be financed through an arrangement of cash and shares.

The combined companies would create an entity with 3.6 million cars under management. The agreement is expected to close by the end of 2022, with ALD's holding company, Societe Generale, owning of 53% of "NewALD" and LeasePlan shareholders owning 30.75%.

ALD is a global mobility solutions provider of full service leasing and fleet management services across 43 countries. Its client base includes large corporations, small- and mid-size enterprises (SMEs), professionals and private individuals.

LeasePlan, which manages fleets totalling 1.8 million vehicles, offers Car-as-a-Service, operating in 29 countries. The company also is committed to transitioning to zero-emission mobility and has set itself the ambitious goal of achieving net zero emissions from its funded fleet by 2030.

NewALD would create a major global mobility company positioned to capture more growth in the mobility sector.

The proposed combination of ALD and LeasePlan into NewALD is expected to cross-leverage the two companies’ complementary capabilities, according to a news release. NewALD would be able to benefit from a fast-growing market driven by strong underlying megatrends, 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

“Today marks the beginning of a new chapter in our history as a first step towards creating NewALD," said Tim Albertsen, CEO of ALD, in a statement. "In the context of today’s transformation of the automotive and mobility sectors, which is proceeding at an unprecedented pace, this proposed transaction is instrumental in the creation of a leading global player in mobility. 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.”

Tex Gunning, CEO of LeasePlan, stated: “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. From day one, NewALD would be operating one of the largest fleets of electric vehicles and will continue to set the standard for ESG in the mobility industry.”

The deal would be a step-change that would position NewALD for long term fleet growth of at least 6% annually after integration.

Originally posted on Automotive Fleet

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