Enterprise Rent-A-Car acquires Burnt Tree
According to Enterprise, the deal will increase the breadth of vehicles and services the company can provide to its customers under its flexible commercial vehicle division, Flex-E-Rent.
The deal will see Enterprise take on Burnt Tree’s diverse commercial fleet of 17,000 vehicles, including commercial vans, HGVs, refrigerated trucks and accessible minibuses, its proprietary fleet management technologies, as well as its network of 20 branches and a team of 400 employees.
In the immediate short-term, the Enterprise Flex-E-Rent and Burnt Tree businesses will continue to operate as two brands, with a view to creating a combined entity, which will be headquartered in Shrewsbury. The acquisition will swell Enterprise’s fleet of commercial vans and trucks to more than 25,000.
Enterprise Flex-E-Rent director Danny Glynn will lead the new business. Burnt Tree chief executive Richard Metcalfe will remain in an advisory role to help steer the direction of the combined business.
Commenting on the deal, Burnt Tree chief executive, Richard Metcalfe, said: ‘Last year we stated our ambition to become the leading and largest 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. This agreement marks the next phase of growth for the business.’
‘We are committed to the growth of our flexible commercial vehicle business, which has grown organically in recent years,’ added Mike Nigro, Enterprise UK and Ireland managing director.
‘We could immediately see the potential of Burnt Tree to bring our customers access to skills and services, which are particularly suited to the needs of commercial vehicle customers.Burnt Tree has some unique expertise and 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.’
Mid-market advisory firm Clearwater International advised Burnt Tree’s shareholders on the deal.