AVR operates through 33 branches in the UK in the light commercial vehicle, heavy commercial vehicle and car rental markets. It has a fleet of more than 11,000 vehicles.
Northgate is placing 6,050,000 new ordinary shares of five pence each, representing approximately 9.4% of Northgate’s issued share capital, to fund payment of the consideration.
In a statement, Northgate said: ‘The acquisition of AVR builds on Northgate’s existing position of leadership in the UK market, in line with Northgate’s strategic plan, and will create a light commercial vehicle fleet, once integrated, in excess of 62,000 vehicles, while at the same time providing wider coverage of the UK market.’
Arriva said it had sold AVR to focus on the passenger services market in the UK and Europe.