FIRST National Vehicle Holdings has announced it has bought Highway Vehicle Management, the contract hire and leasing arm of GUS plc, for about £170 million. The deal is the latest in a series of acquisitions as Abbey National-owned First National pursues its stated aim of becoming one of the top three contract hire companies in the UK.

With around 20,000 vehicles on the books, Highway will catapult FNVC into the lower reaches of the 'leasing superleague' - dominated by Lex Vehicle Leasing, GE Capital Fleet Services and Lease Plan.

Berkshire-based Highway has endured a turbulent time in recent months after it was purchased by General Guarantee - the finance arm of retail giant GUS - in 1997. Long standing managing director Colin McLean left the company in 1999 after an extensive re-branding exercise and Highway's parent company confirmed it was up for sale in May.

The acquisition comes just weeks after FNVC purchased the 1,300-vehicle Brooklyn Vehicle Contracts fleet.