• Corporate Finance Transactions

BGL and Global M&A Fuel Another Penske Win

May 04 2005

A U.S. consortium including Roger Penske, the legendary racing champion and successful businessman, has bought QEK Global Solutions (QEK), the world’s leading provider of outsourced vehicle and asset management solutions. 

Roger Penske, revered globally in automotive circles for his success on the track as well as in the executive suite, was instrumental in closing the QEK deal.
 
“QEK offers a unique service to the automotive OEM and Tier One supplier segments. We see considerable synergies between the services QEK provides and the range of services provided by our investor group. We are anxious to work with QEK's management team to support its growth strategy as well as continue to improve upon the high quality of service offered to QEK's clients,” Penske said.
 
The purchasing consortium is led by Transportation Resource Partners, LP (TRP), a U.S.-based $265 million private equity fund focused on the transportation and transportation services sectors. Other investors included UnitedAuto Group, Inc. (NYSE: UAG) and Penske Truck Leasing Co., L.P.
 
Global M&A, the partnership of 27 firms of which Brown Gibbons Lang & Company (BGL) is the U.S. member, represented the seller.
 
“This deal shows exactly how Global M&A is adding value in the worldwide middle-market. By working together as partners, our firms generated interest and credible offers. Further, we played the decisive role in putting all elements of the winning transaction together. This is a marquee accomplishment for our professionals,” Global M&A chairman Michael Gibbons said.
 
QEK's principal clients are global automotive original equipment manufacturers (OEMs) and a select group of their top-tier suppliers. It has operations in Europe, North America, and Australia. 
 
The company employs over 1,300 personnel at 65 locations and generated in excess of $110 million of revenues in fiscal 2004. It counts General Motors, Ford, Nissan, Renault, Peugeot, Saab and Volkswagen among its many clients. 
 
QEK supports both the OEMs’ general company car fleets -- often used for product evaluation purposes -- and specialized fleets such as marketing, engineering and fleet sales vehicles.
 
Marketing cars are frequently referred to as demonstration or auto show cars. Engineering cars are used by internal research and development departments for testing purposes and fleet sales cars are typically returned to OEMs after a re-purchase from car rental companies.
 
“QEK has created a comprehensive outsourced service offering for the automotive OEM and Tier One sectors. The company’s lifecycle vehicle asset management services and international scale were attractive to the consortium. In its core competency, it has no direct competition. As a result, QEK is a strategic addition to TRP and the Penske organization,” said Bill Watkins, director of BGL.
 
When QEK's Dutch parent company, LeasePlan Corporation, decided that QEK was non-core, it selected an international team of corporate finance advisers led by London-based M&A boutique Livingstone Guarantee (LG) to advise on the divestment. Global M&A partner firms BGL (U.S.), LG (U.K.), Beerworth & Partners (Australia) and Solveigh Corporate Development (The Netherlands) worked seamlessly to generate global purchaser interest.
 
“The QEK team has enjoyed its relationship with LeasePlan and we are excited to begin working with our new partners. They bring tremendous resources and know-how to help us achieve our growth objectives,” QEK’s Group Chief Executive, Kerry Budry, said.
 
“BGL and Global M&A provide middle market companies unparalleled access to global, strategic and financial buyers. We generated offers from a variety of strategic and financial buyers before LeasePlan selected the U.S. consortium,” said Andrew Petryk, managing director and principal of BGL.

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