Merchants Fleet to be acquired by Bain, ADIA
Bain Capital, along with a wholly owned subsidiary of the Abu Dhabi Investment Authority, have entered a definitive agreement to buy Merchant Automotive Group, which does business as Merchants Fleet and Merchants Auto.
The deal was announced Thursday by Merchants.
The company said in a news release that Merchants’ leadership team will retain their current positions and will be co-investor in the business.
Merchant chief executive officer Brendan Keegan will add the titles of president and chairperson, as well.
“The growth Merchants has achieved over the past five years is unrivaled in the industry, and the new ownership group—Bain Capital, ADIA and our leadership team—share a steadfast commitment to keep our clients on the cutting edge of commercial fleet through continued innovation,” Keegan said in a news release.
“The infusion of new capital affirms the merits of our core values and disruptive approach. While other providers grapple with the effects of a consolidating market—business interruption, systems integration, confusion and employee impacts—Merchants moves forward fearlessly at the vanguard of fleet and mobility with best-in-class solutions for fleet electrification, fueling technology and last mile. There’s never been a better time to work for, or work with, Merchants.”
Gary Singer is the outgoing chairman and owner of the company.
“Since my father Irving Singer founded Merchants in 1962, we have grown alongside our clients through innovation and developing new service offerings,” he said. “Today’s news reflects decades of industry leadership and a remarkable transformation over the past four years, while also setting the stage to accelerate the forward trajectory that is well underway.
“As my brothers — Robert, Jeffrey, & Michael — and I step away, we are incredibly proud of what has been achieved and excited to pass the reins to the new ownership group. Merchants has the right team and management in place, the right partners in Bain Capital and ADIA, and the determination and grit to forge an exciting future.”
The company will continue to operate independently.
The transaction’s terms were not disclosed. It is expected to close in the third quarter.
“When we initially provided growth financing to Merchants in 2020, we had our eye on a longer-term partnership,” said Olof Bergqvist, a Bain Capital managing director, said in a news release. “As the fleet management industry continues to experience considerable disruption, we are excited to continue to support Brendan and the Merchants team on their path of consistent long-term growth driven by connected vehicles, multi-modal transportation, efficiency requirements and data-driven intelligence.”
Julia Levinson, a vice president at Bain Capital, added: “Merchants is at the forefront of electric vehicle expansion as more companies look to improve their ESG performance.”