Solihull rental firm Fleet Hire has been acquired by Australian group SG Fleet Hire in a £25.7 million deal.
Fleet Hire provides contract hire, salary sacrifice, short-term rental and fleet management services.
It has 60 staff and bills itself as a 'one-stop provider' of services with a fleet totalling 6,500 units, compared with SG Fleet Hire's 83,000 units.
The existing management team, led by chief executive Graham Hale, will remain with the new-look group.
Sydney-based SG Fleet said the acquisition provided it with critical mass in the UK market where it already runs an operation from a base in Shirley.
The deal comprises a purchase price of £19.6 million and lease portfolio debt net of cash of £6.1 million.
SG Fleet Hire's chief executive Robbie Blau said: "Fleet Hire is an ideal fit for our long-term growth strategy in the UK.
"Its acquisition meets all the strict criteria we have set for ourselves, in terms of valuation and expansion of customer book and product range.
"Together, with the invaluable expertise we access by retaining the commitment of the company's management team, we have made a significant stride forward in this market.
"We will have a more sizeable corporate offering, capable of servicing larger customers. Our planned diversification into the high growth short-term rental segment will also be accelerated."
Catalyst Corporate Finance advised the shareholders of Fleet Hire on the sale of the business.
It was appointed by the shareholders to undertake a review of Fleet Hire and then marketed the business to a small number of potential trade buyers.
Catalyst partner Richard Sanders led the deal supported by director Emmet Keating and Claire Carpenter.
Mr Sanders said: "This is our fourth Midlands deal since the Brexit vote....I look forward to seeing the combined business go from strength to strength."