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FFW advises Arriva on its £129 million disposal of vehicle rental business

07 February 2006

Field Fisher Waterhouse (FFW) has advised Arriva, the European transport services group, on the disposal of its car and commercial vehicle rental division, Arriva Vehicle Rental.  The business has been sold to the UK’s leader in commercial vehicle rental, Northgate PLC in a deal worth approximately £129 million.

Arriva Vehicle Rental operates from 33 branches in England and has a fleet of more than 11,000 vehicles.  The disposal of the business is part of Arriva’s strategy of being focused on the passenger services market in the UK and mainland Europe.  The sale will allow Arriva to significantly strengthen its balance sheet at a time when it is pursuing acquisition and franchise opportunities that will strengthen its presence in bus, coach and train services.

FFW corporate partner Nigel Taylor advised Arriva, assisted by a team of partners and lawyers from across the firm including Nicholas Thompsell (corporate); Martin Barrett (property); David Gallagher (pensions); and Nicholas Noble and Nicholas Beecham (tax).

This is FFW’s first purely corporate deal for Arriva, having previously advised this client on its train operations, including its rail franchise deal for the Wales and borders area. 

The firm is also currently advising Arriva on its bid for the enlarged South Western trains franchise.

Nigel Taylor said, “FFW’s transport group has worked with Arriva for a number of years.  This is the first time we have acted for Arriva on a purely corporate deal and we are delighted to have advised on a strategic disposal that will allow Arriva to focus more strongly on developing its passenger services business.”

Dickinson Dees advised Northgate Plc.

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