Lloyds Banking Group has acquired a UK-based vehicle management and leasing company that provides electric vehicles and ultra-low emission vehicles via salary sacrifice schemes. The £300m deal provides a successful exit for ECI Partners.
Tusker specialises in salary sacrifice cars having launched the UK’s first car benefit scheme in 2008. The firm’s salary sacrifice customers are from across the UK and range from SMEs to large public and private sector customers.
More than 1,300 companies are now supported by Tusker’s fleet of in excess of 23,000 vehicles of which 60 per cent are EVs, with future orders set to increase it to 77 per cent.
Nick Williams, managing director for transport at Lloyds Banking Group, said: “As part of our 2022 strategy, we outlined our ambitions to grow our participation in vehicle leasing and the acquisition of Tusker is a key part of delivering on this with a net-zero focus, at a time when the transition to sustainable methods of transport is a high priority for both our business clients and retail customers.
“Alongside our Lex Autolease business, this acquisition allows Lloyds Banking Group to offer our products and services across a wider section of businesses and enterprises, enabling them to provide competitive benefits packages while helping them transition to net-zero.”
Paul Gilshan, chief executive of Tusker, added: “Lloyds Banking Group are the obvious choice to take Tusker to the next phase of our growth and I am delighted that we are joining the Lloyds family. Not only do we have aligned strategic goals on our commitment to net zero and excellent service, but with their strong financial support we can grow our electric fleet faster by offering exceptional value to our customers, drivers and partners.
“And while remaining as a stand-alone salary sacrifice business we can continue to do what the Tusker team do best and offer more companies and employees across the UK access to affordable electric vehicles.”
ECI Partners, which first backed Tusker in 2015, said the sale had generated a return of 6.2x.
“Tusker is a fantastic and innovative business supporting the UK’s transition to Net Zero, and we’re delighted with the successful sale of the business to Lloyds Banking Group, ” said ECI partner Paul McCreadie.
“I’d like to thank Paul Gilshan and the team for the exceptional job they have done growing Tusker, making greener cars more affordable and accessible to so many different employees. We wish them every success for the future.”
Tusker is based in Watford with staff across the country.
ECI was advised by Evercore (corporate finance), Squire Patton Boggs (legal) and EY (FDD).
