Melton Mowbray based Prestige Fleet Servicing has been acquired by the AA in a deal valued at c.£11m. Prestige is a rapidly growing technology-led supplier of Service, Maintenance and Repair (SMR) services to fleet and leasing companies.
SMR services are delivered via Prestige’s accredited UK network of around 400 independent garages with 93% UK population coverage. The process is substantially automated through its proprietary software platform, UNITY, which provides real-time interfaces with several information sources such as parts suppliers, industry bodies and government databases.
UNITY allows customers to book their vehicles in directly at a conveniently located service centre with the right technical capabilities. Prestige undertakes more than 120,000 SMR interventions a year. The company will continue to be run by its existing management team who have doubled the size of the business over the last 3 years.
The acquisition of Prestige represents a significant opportunity for the AA to grow new revenue streams without incurring significant capital expenditure. Simon Breakwell, AA Chief Executive Officer, said: “We are delighted that the AA has acquired Prestige Fleet Servicing. The acquisition is in line with our strategy to differentiate the AA through innovation and digital platforms. Putting service, innovation and data at the heart of everything we do is key to our strategy.”
The Prestige acquisition will give the AA a strong and profitable platform from which to further strengthen its presence in SMR, working with fleet and leasing companies and supporting its OEM partners. The AA already works with more than 60% of the fleet market and many AA customers utilise the Prestige network already.
Smith Cooper Corporate Finance’s deal team, comprising Dan Bowtell and James Ward, led the transaction and advised Prestige’s shareholders. Dan commented: “Working with the Prestige shareholders, the AA was identified as the perfect buyer for Prestige. It is a growing business which offers the AA a strong platform for future SMR growth and we look forward to seeing it develop further in the coming years.” Legal advice was provided by Gateley PLC (Chris Reed).
Completed: February 2019
Smith Cooper team: Dan Bowtell, James Ward