Zenith comments on sale rumours
Zenith has responded to reports that it has been put up for sale for £700m, commenting that the appointment of financial advisors is ‘good practice’.
It follows an article in The Times that private equity firm HgCapital, which has a majority stake in Zenith, recently hired the advisory firm Evercore to examine its options.
In response, Zenith’s CEO, Tim Buchan, said: “Zenith continues to enjoy very strong trading conditions. Strong organic growth has been driven by our continued investment in innovation and our relentless focus on client service. This has been rewarded by significant client wins including our recent launch of the largest private company salary sacrifice scheme in the UK, and our first pan-European appointment since the establishment of our Auto Alliance partnerships.
“Looking forward, there are a number of corporate finance options available to Zenith, including a refinancing, given the market’s strong and longstanding support for the business. In this context, Zenith has been working with a number of advisors with Evercore taking the lead role.
“As a private equity owned business, it is generally considered good practice to have an advisor working alongside us to maximise the benefits of their expertise.”
Zenith has seen number of management buyouts in recent years. At the end of 2013, HgCapital acquired Leasedrive in an exclusive transaction and then acquired Zenith through a bilateral transaction in early 2014 to merge the two companies.