Lloyds Banking Group has acquired UK salary sacrifice specialist Tusker for around £300m (€340.5m).

Paul Gilshan, Tusker’s CEO, said Lloyds Banking Group was the obvious choice to take the company to the next phase of growth

The group said the acquisition will support work to achieve its net zero emissions targets by 2050 or sooner through the promotion of electric vehicles (EVs) and ultra-low emission vehicles (ULEVs).

Founded in 2000, Tusker provides traditional contract hire company car schemes but is also an expert in salary sacrifice and says it launched the UK’s first car benefit scheme in 2008. Customers range from SMEs to large public and private sector customers.

Its customer base has grown tenfold in the last decade and it now supports more than 1,300 companies with a fleet of over 23,000 vehicles, of which 60% are EVs, with future orders set to increase it to 77%. Tusker has also pledged to have a fully electric fleet by 2030 in line with its membership of the EV100 group of companies, who are all committed to going zero-emission.

Lloyds Banking Group currently provides leasing or finance for over one million cars and vans through its Lex Autolease and Black Horse, including one in 10 new electric cars on UK roads. The group said the acquisition of Tusker, which will remain a standalone business, will help drive its work.

Nick Williams, managing director transport, commented: “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.”

Tusker CEO Paul Gilshan said that Lloyds Banking Group was the obvious choice to take the company to the next phase of growth.

“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,” he continued.

“And while remaining as a standalone 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.”

The acquisition follows exponential growth in salary sacrifice take-up in recent years as more employers and employees recognise the cost-saving benefits to lease EVs. This has been boosted further by the 2022 Autumn Statement, which confirmed that Benefit-in-Kind rates will remain low until 2028, well below internal combustion engine equivalent rates and ensuring the salary sacrifice is attractive for both lower- and higher-rate taxpayers.

Data indicates some five million employees are eligible for such schemes in the UK and this figure could grow as businesses look to attract and retain talent.