Wed, 26 Jun 2024 | BUSINESS SALE
Rivus Fleet Solutions, a Birmingham-headquartered fleet management services provider, has been acquired out of administration by the Metropolitan Police Service, its largest customer. The deal saves 165 jobs and ensures that the services provided by the company will continue, with the Met taking elements of its operations in-house.
The company was formed in 2019 following private equity firm Aurelius’ acquisition of BT Fleet Solutions. The firm provided fleet management, repairs and maintenance services for light commercial vehicle (LCV) fleets.
In its most recent accounts, for the year to December 31 2022, the company reported turnover of £192.5 million, up from £162.4 million a year earlier, but saw its post-tax profits fall from £4.3 million in 2021 to £2.48 million. At the time, its total equity stood at £22.7 million.
In July 2023, the company suffered a major blow when it lost a key customer that delivered approximately 70 per cent of its revenue. As a result, it launched a major restructuring of its LCV operations in October 2023, leading to the closure of 48 LCV garages as it sought to reduce its labour and rental cost base.
Rivus also sought to institute a more agile business model, with leaner overheads, in order to drive organic growth. In November 2023, it secured a major fleet management contract with the Met, which accounted for 85 per cent of its business.
Despite this, the company was unable to avoid falling into administration, with Jane Steer, Tim Higgins and Zelf Hussain of PwC appointed as joint administrators on June 21. Immediately following their appointment, the joint administrators finalised the sale to the Met Police.
In a statement, the administrators said: “Immediately following appointment a sale of the majority of Rivus Fleet Solutions and its assets was transacted to the Metropolitan Police Service in a deal that safeguards 165 jobs and secures the delivery of crucial services to the Met.”
The statement added that the sale has no impact on the trading business of Rivus’ sister company Pullman Fleet Solutions Limited (which trades as Rivus HGV).
Joint administrator Tim Higgins added: Higgins said: "We are pleased to have successfully secured a transaction which safeguards 165 jobs, despite Rivus having suffered the loss of a material customer at the end of last year.”
"We will now focus our efforts to ensure a smooth continuation of any services required post-sale, to both seek to minimise disruption for non-Met customers, as well as support the Met in any transitional services required.”
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