Global transport group ComfortDelGro Corporation has announced that its CityFleet Networks subsidiary is acquiring Addison Lee for £269.1m (€323.5m).

The deal supports ComfortDelGro’s expansion into the premium mobility segment

The deal for Addison Lee’s private hire, courier and black taxi business in London supports ComfortDelGro’s expansion into the premium mobility segment, strengthening its overall point-to-point proposition in the UK and globally.

The addition of Addison Lee will extend the group’s London footprint and grow its taxi and private hire network to more than 34,000 vehicles globally.

On completion, the 7,500 drivers and 5,000 vehicles of the Addison Lee’s London-based network will complement CityFleet Networks’ existing private hire and black taxi fleets elsewhere in the UK including Liverpool, the Wirral, Chester and Aberdeen.

Mark Greaves, ComfortDelGro chairman, said: “This acquisition is in line with our strategy to expand the group’s point-to-point mobility portfolio. We will use Addison Lee’s strong brand, customer base and reliable premium driver network to continue creating great journeys for our customers and the communities we serve – a commitment that we hold true across our businesses. With 90% of their existing fleet already made up of cleaner energy vehicles, this will help accelerate our fleet transition journey.”

The acquisition grows the group’s presence in the UK. In addition to operating CityFleet Networks in several locations across the UK, ComfortDelGro provides pre-planned and on-demand ground transportation to businesses, as well as private and ride-share transfers to airports, bus and train stations and ports through its recently acquired business, CMAC.

The group also owns and operates Metroline buses and Westbus coaches in London, Adventure Travel buses and coaches in Wales, as well as the Megabus, Scottish Citylink and Irish Citylink inter-city coach services.

Liam Griffin, CEO of Addison Lee, and his team led a consortium that restructured the business at the start of 2020 and delivered a return to profit. Griffin, along with the current key management, will remain at the firm following the acquisition to drive the next phase of its growth.

Griffin said: “Over the last four years, ComfortDelGro has demonstrated its deep knowledge of the business, and a clear understanding of our customers’ and drivers’ needs. This, alongside the strength and heritage of the Addison Lee brand, has positioned us perfectly for further expansion into the premium segment. ComfortDelGro is a perfect complementary fit for us. They share our philosophy, vision, and ambition for the Addison Lee brand and bring significant international industry expertise to the business.”

Jefferies International acted as Addison Lee’s exclusive financial advisor on the transaction, with Linklaters LLP acting as legal advisor.