Equistone has acquired a majority stake in flexible rental provider TOM Vehicle Rental, anticipating strong growth potential in the rental market.
TOM provides long-term, flexible hire of commercial vehicles (vans, trucks, trailers, and cars) to more than 900 public and private sector customers. Its rental business comprises 11 hire locations across the UK (six in Scotland and five in England) and is one of only two multi-vehicle rental specialists in this market.
“TOM has a strong business model, a compelling growth trajectory, and a highly regarded, dynamic management team with an impressive track record. Accordingly, it represents a great addition to Equistone’s UK portfolio and we’re delighted to have backed the Company,” said Tim Swales, partner at Equistone.
TOM generated revenues of £213 million in the financial year ending March 2016. Equistone’s investment will support the Company’s ongoing organic and acquisitive growth plans to further increase its market share within the UK vehicle rental sector.
Robert Stewart, chief executive of TOM Vehicle Rental, said: “Equistone’s investment in TOM is transformational for our business, in terms of both the financial backing and the increased executive team bandwidth it provides. This additional support will allow us to accelerate the ambitious expansion in our market share, number of UK locations, fleet size, customer base, and rental service offering. Throughout these changes, the same quality of service and concern for customer satisfaction that have underpinned TOM’s success to date will remain our core focus.”