QEK Motors in Global M&A Deal
May 2005
QEK Global Solutions, the world’s leading provider of outsourced vehicle management solutions to car manufacturers, has been sold by Dutch owners, LeasePlan Corporation, in a flagship deal for the Global M&A partnership of investment banking boutiques. QEK has been acquired by a US consortium led by Transportation Resource Partners, a US private equity fund focused on the automotive sector, and US NASCAR motor sports hero Roger Penske.
LeasePlan chose Livingstone to lead an international team of corporate finance advisers, including US Global M&A partners Brown Gibbons Lang & Co, to advise on the divestment. Marcel Jansen, LeasePlan’s Director of Corporate Strategy & Development comments: “Livingstone and their Global M&A partners have delivered a very satisfactory result for LeasePlan. They have been involved at every stage in a difficult and demanding process and we are very pleased that QEK has found a good strategic partner with TRP, Penske and their consortium.”
Frank Bulman, the Livingstone deal leader who managed the international project team on a day-to-day basis, says: “QEK counts major Original Equipment Manufacturers (OEM) such as General Motors, Ford, Nissan, Renault, Peugeot, SAAB and Volkswagen among its many clients. Its total lifecycle vehicle asset management services and international scale make the group unique – its core competency has no direct competition and this proved extremely attractive to the new investors.”
Roger Penske, a well known figure within the US automotive industry and famous for his backing of the Team Penske NASCAR racing team was instrumental in closing the QEK deal. “QEK offers a unique service to the automotive OEM and Tier One supplier segments. We see considerable synergies between the services QEK provides and the range of services provided by our investor group. We are anxious to work with QEK's management team to support its growth strategy as well as continue to improve upon the high quality of service offered to QEK's clients” he comments.
QEK’s impressive track record has been built up supporting the major car manufacturers’ general company car fleets, press and show fleets, engineering vehicles and fleet sales. Services range from ‘prepping’ show cars for the most famous motor shows, to delivering test and complimentary vehicles to the rich and famous. QEK employs 1,303 people on the three Continents and achieved over US$110 million of turnover in 2004.
The QEK team includes Kerry Budry, Group Chief Executive, Jim Olexa, Group Chief Operating Officer and Managing Director of the U.K. operations and Robert Shapton, Group Finance Director.
Jeremy Furniss, a Partner at Livingstone, adds “QEK has 65 operations within the UK, the US and Australia and with the possibility that the eventual purchaser might emerge from anywhere in the world, LeasePlan required advisers with impeccable cross-border deal making experience. The strength of the Global M&A solution, brought together M&A experts from all three countries, and a local presence in Holland, gave them exactly the credentials they sought.”
The team generated offers from a variety of strategic and financial buyers before finally selecting the US consortium led by TRP, whose fund is backed by major automotive services group Penske Corporation, Goldman Sachs and GE all of which were eager to provide the financial backing to the existing QEK management team.
Furniss adds: “Our colleagues within Global M&A and - in particular - Andrew Petryk and Bill Watkins at BGL, were crucial in bringing the negotiations to a successful conclusion.”
For further information contact:
Jeremy Furniss
T: +44 20 7484 4703
E: furniss@livingstonepartners.co.uk
