Hitachi Capital Vehicle Solutions acquires Newtown Vehicle Rentals fleet
The sale follows an extensive marketing process and the appointment of joint administrators from Deloitte, Dominic Wong and Matt Cowlishaw, on 2 December 2010.
NVR is a provider of light commercial vehicles and trucks to the business sector on contract hire and rental. Its fleet of around 7,000 vehicles was funded by 25 different lenders.
Joint administrator, Dominic Wong, partner in charge of Deloitte's Reorganisation Services team in the Midlands, said: 'NVR has historically been a profitable and growing business with robust revenues and a high quality customer base. It had established a reputation for strong service levels and an offering built on a full fleet management and maintenance service. However, the limited funding available in the recent economic environment for new and replacement vehicles caused the fleet to age, incurring greater maintenance costs, which impacted both profitability and cash flow.'
98 of NVR's 131 employees left the business on agreed terms, prior to the sale. 33 employees have taken up new contracts with Hitachi Capital.
Simon Oliphant, chief executive officer, Hitachi Capital Vehicle Solutions, commented: 'The acquisition of the NVR portfolio demonstrates our commitment to the vehicle leasing market and supports our strategic objective of growing our commercial vehicle business. Our focus for the next few weeks will be ensuring that customers experience minimal disruption and the retained staff are absolutely committed to achieving this.'