Enterprise Rent-A-Car is known as one of the largest vehicle rental companies in the world with thousands of locations based in numerous countries. Since Enterprise was first introduced in the UK their popularity has gone from strength to strength, making it a multi-billion dollar company. Now, the car rental giant has acquired commercial vehicle rental specialist Burnt Tree in their mission to dominate the sector.
As of now neither company are willing to talk about the amount that changed hands, however what we do know is that through the deal Enterprise Flex-E-Rent has gained Burnt Tree’s commercial fleet of seventeen thousand vehicles consisting of HGVs, commercial vans, refrigerated trucks and accessible minibuses, as well as its range of fleet management technologies. Twenty branches and over four hundred employees were also taken on by Enterprise Flex-E-Rent, showing that the deal was intended to be a complete take over of one company by the other.
Discussing the deal, Mike Nigro, managing director of Enterprise UK and Ireland, said: “We are committed to the growth of our flexible commercial vehicle business, which has grown organically in recent years. We could immediately see the potential of Burnt Tree to give our customers access to skills and services that are particularly suited to the needs of commercial vehicle customers. Burnt Tree has some unique expertise that it can bring to Enterprise and it will also benefit from becoming part of a truly global organisation.
“The combined business post-acquisition will be far stronger with greater economies of scale and better technology, while the transfer of knowledge will allow us to better serve our customers.” Meanwhile, Burnt Tree chief executive Richard Metcalfe said: “Last year we stated our ambition to become the leading and largest business in our industry. In time, this agreement will allow Burnt Tree to achieve its full potential to become the market leader. It will become part of the world’s largest vehicle rental company, which, like Burnt Tree, is privately-owned.
“I know that there is both the vision and resources to grow the business over the long-term, which means there will be opportunities for people here. I would like to thank everyone sincerely at Burnt Tree for all their hard work and for making the business such a success. This agreement marks the next phase of growth for the business.” It has been reported that Metcalfe will be remaining in the company as an advisor to help the two businesses merge and create new strategies for the future.
For the foreseeable future, Burnt Tree and Enterprise Flex-E-Rent will operate as two separate brands, with Enterprise Flex-E-Rent director Danny Glynn at the helm. With the acquisition of Burnt Tree, Enterprise Flex-E-Rent now has a fleet consisting of over twenty five thousand different commercial vehicles that can be rented for varied periods of time. One of the main reasons Enterprise Flex-E-Rent decided to acquire a business such as Burnt Tree is because it allows them to expand and provide their customers with more choice and flexibility.
The new head office for both businesses will be based in Shrewsbury, with many industry experts expecting it to be an extremely lucrative partnership. Paul Jones from financial solutions specialist Clearwater International helped with the sale of Burnt Tree, and said: “Burnt Tree is an extremely well established business with significant experience in its field. As the economy continues to strengthen and funding is more readily available, the vehicle outsourcing market is on an upward trajectory.
“The Enterprise deal is illustrative of industry attractiveness and the interest for delivering growth strategies through acquisitions. There has also been notable activity from private equity players, such as HgCapital and Sovereign, which also demonstrates the growth potential within the wider commercial vehicle rental, contract hire and fleet management market.”
Those that work in industries that require commercial vehicles to complete day to day tasks will likely benefit from the merging of Burnt Tree and Enterprise Flex-E-Rent, especially if it provides more choice when it comes to the types of commercial vehicles that can be rented, how long they can be rented for and the range of commercial van insurance policies they come with.
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