Fleet News

PHH in $186m FCM buyout

HFS Incorporated, the United States-based parent company of PHH Vehicle Management Services, is to buy rival UK fleet management company Fleet Cost Management, accident management company Automanagement and the Overdrive and Dialcard fuel card businesses. The $186 million deal in cash, plus future payments of up $20 million over the next two years based on profit performance effectively sees HFS Incorporated buy Harpur UK - parent company of the four brand names - from HG Holdings, and is expected to be completed in January.

PHH Vehicle Management Services president John Cullum said: 'PHH sees the acquisition as an exciting development, one which has a close strategic fit with our activities and which reinforces the company's commitment to the development of its business in the UK and Europe.'

The acquisition will give PHH a combined fleet management operation of 275,000 vehicles - 15% of all cars and vans under management in the UK - and 900,000 fuelcards - 35% of the UK fuel card market and 13% of annual corporate purchasing of fuel. The deal excludes the purchase of Car Fleet Control and Harpur's private label card processing and Australian businesses. PHH Corporation, the parent company of PHH Vehicle Management Services, was bought by HFS Incorporated last year with senior management saying that the tie-up signalled expansion.

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