Bain Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority, along with the Merchants Fleet leadership team, have completed the acquisition of Merchants Automotive Group.
The company’s leadership team will remain in their current roles, Merchants said in a press release Wednesday. Chief Executive Officer Brendan P. Keegan has assumed additional roles of president and chairperson.
Merchants Fleet, the nation’s fastest-growing fleet management company, provides fleets of vehicles and management of those vehicles to 20 unique industries. It is headquartered in Hooksett and has an innovation center in the Chicago area.
Merchants Auto, the flagship of the 60-year-old company, sells used vehicles in Hooksett.
But Merchants’ fleet business has long dwarfed its auto sales. Merchants Fleet is the fourth-largest fleet management company in the United States, with more than 165,000 units across North America. Its business model focuses on electric vehicles, technology and innovative services.
The company said it has existing reservations for 40,000 electric vehicles, and an investment and commitment of $2.5 billion.
“Merchants Fleet has been at the forefront of fleet services for 60 years, and this deal secures our leadership position for another 60 years and beyond,” Keegan said in a statement. “With the acquisition by Bain Capital, ADIA and our leadership team, Merchants is able to further accelerate innovation, catalyze the EV revolution and fearlessly drive commercial fleet forward.”
Broadhaven served as exclusive financial adviser. BNP Paribas served as financing adviser. WilmerHale served as legal adviser to Merchants ownership. Ropes & Gray served as legal adviser to Merchants management. Davis Polk served as legal adviser to Bain Capital. Gibson Dunn served as legal adviser to ADIA. Paul Weiss served as legal adviser for financing.
