Billion-dollar leasing takeover planned

Billion-dollar leasing takeover planned

ALD announces the signing of a letter of intent to acquire 100 percent of the shares in Leaseplan. The takeover would create the new company “NewALD”. As a global leader in mobility, NewALD would be positioned (according to itself) to benefit from a rapidly growing market driven by strong megatrends, including:

• Übergang vom Besitz zur Nutzung an allen Fronten: B2B, B2C und sogar B2E4
• Datengesteuerte digitale Transformation der Mobilitätsbranche
• Übergang zu emissionsfreier und nachhaltiger Mobilität 

The proposed acquisition of LeasePlan for a total consideration of €4.9 billion would be carried out through a combination of cash and shares and is expected to be completed by the end of 2022. Leaseplan is one of the world's leading fleet management and mobility companies by fleet size: total fleet of 1.8 million vehicles.

ALD paints a rosy outlook for shareholders:"This deal would be a step that will take NewALD towards long-term fleet growth of at least six percent per annum. NewALD aims to improve its cost-to-income ratio to approximately 45 percent by 2025, which would confirm NewALD's best-in-class position in the industry. The transaction is expected to generate operational and procurement synergies of EUR 380 million p.a. before tax."

It is also expected to offer attractive returns and significant value creation for investors."Taking into account the benefits of fully staggered synergies and excluding restructuring costs, the pro forma increase in normalized earnings per share is expected to be approximately 20 percent in 2023. In the medium term, NewALD's dividend payout ratio is expected to be between 50 and 60 percent by 2025."

Tim Albertsen, Chief Executive Officer of ALD, commented:
"Today marks the beginning of a new chapter in our history as the first step towards the creation of NewALD. In the context of today's transformation of the automotive and mobility industry, which is advancing at an unprecedented pace, this proposed transaction significantly contributes to the creation of a leading global player in mobility."

Tex Gunning, Chief Executive Officer of LeasePlan, says:
"The combined business would be instrumental in shifting the automotive industry from ownership to subscription models and zero-emission mobility. By joining forces with ALD, we combine the best talent in the industry with the investment power necessary to meet the next-generation mobility needs of our customers. From day one, NewALD would operate one of the largest electric vehicle fleets and continue to set the standard for ESG in the mobility industry. I am very proud of all the lease planners who have made our business what it is today. We look forward to working with ALD’s excellent team and leading our shared business into the exciting future of mobility.”