Merchants Fleet accelerates innovation after being acquired by a private equity firm
Merchants Fleet, representing the fourth largest provider of fleet management services in North America, has boosted its efforts in services and innovation to grab more market share after getting acquired by a private equity firm.
Managing 165,000 fleets across the continent, Merchants Fleet aims to continue sustainable growth in the commercial fleet market in the long term. Acquired by the US-based Bain Capital and AbuAbu Dhabi Investment Authority (ADIA), Merchants Fleet plans to boost expansion by focusing on the trends in the disruptive fleet sector, mainly pursuing advances in connectivity, multi-modal transportation and data analytics.
Expanding services accordingly with the investments in new areas of technology, investors of Merchants Fleet hope to shape the 60-year-old company towards future needs, achieving higher efficiency and sustainability in managing over $2 billion in assets in North America. The company provides a wide array of services, including fleet optimisation, electric vehicle (EV) fleet optimisation, driver productivity, cost&risk management.
The acquisition is also to assist the electrification efforts of Merchants Fleet, which invested $2.5 billion for this goal, reserving 40,000 EVs in recent months. One of the deals from the previous year includes replacing 5,400 mid-size, light commercial vehicles (LCVs) with vehicles produced by General Motor's BrightDrop branch.
The acquisition of Merchants Fleet by Bain Capital and ADIA is expected to be concluded in the third quarter of this year.
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Image courtesy of Merchants Fleet.