Fast-growing Midlands-based commercial vehicle contract hire provider Prohire Group is back on the takeover trail after acquiring Staffordshire firm Midland Vehicle Contracts.
The deal - made for an undisclosed sum - was led by Grant Thornton's Birmingham based corporate finance partner Tony Dunn and colleagues Simon Hill and Richard Thomas.
Headquartered in Stoke-on-Trent, Prohire is a provider of commercial vehicle contract hire systems on a national basis aimed at corporate customers looking to outsource fleet management and/or financing for anything from five up to 300-plus vehicles.
Prohire employs 50 staff. Its key customers include BSS Group, Reliance Secure Task Management, MFI, Porcelanosa, The Pier and Greene King.
Midland Vehicle Contracts is located within four miles of Prohire and provides a similar service to a complementary customer base, including Bunzl and PHS.
David Barlow, joint owner and chairman of Prohire, said: "Grant Thornton presented us with a proposition that we could not turn down. "The businesses are a great fit - both strategically and geographically - and the owner, Andrew Mellard, is someone that we have both known and respected for a number of years.
"Andrew retains an interest in the enlarged business and, working with him, we will ensure that the sum of the businesses exceeds the individual parts."
He added: "The enlarged group will be the third largest player in the commercial vehicle contract hire sector with a turnover in excess of #20 million and over 2,000 vehicles under management. This milestone in our business development provides an excellent platform to continue our impressive growth and from which to offer our innovative product range."
Tony Dunn, corporate finance partner at Grant Thornton, also said: "It was the perfect match - Andrew Mellard was looking for the right acquirer whilst David and Colin were searching for a suitable acquisition to take Prohire to the next level.
"MVC fitted the bill perfectly - a strong, well established and stable business with a blue chip customer base and with an owner known to both David and Colin.
"The deal means that Prohire can now compete head on with the 'big boys' in the commercial vehicle contract hire sector."
Prohire was funded and advised out of Birmingham with acquisition finance from John Stirzaker and Sukhi Johal of the Bank of Scotland and legal advice from Jo Bligh of Browne Jacobson. Naomi Tudor of Martineau Johnson provided legal advice to the bank.
