Bain Capital Finds ADIA as a Partner for Merchants Fleet Acquisition

Posted on 07/22/2022


Merchants Fleet is a U.S. fleet management company. Bain Capital, LP and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) have signed a definitive agreement to acquire Merchants Automotive Group, DBA Merchants Fleet, and Merchants Auto. The members of the Merchants leadership team will remain in their current roles and will be co-investors in the business. Chief Executive Officer Brendan P. Keegan will also assume roles of president & chairperson. The transaction is subject to customary regulatory and other approvals and is expected to close in the third quarter of 2022.

Founded in 1962 by Irving Singer, Merchants Fleet is the fourth largest provider of fleet management services with over US$ 2 billion in assets under management and 165,000 managed commercial fleet units across North America. In 1962, Irving Singer and his wife Bernice Siegel Singer founded Merchants Automotive Group when they opened used car dealership Merchants Motors in Manchester. Five years later, they started a fleet leasing business that has evolved into Merchants Fleet, which is now based in Hooksett, New Hampshire. In 2015, Merchants Fleet acquired Texas-based Alamo Leasing, the latest in a series of partnerships and acquisitions aimed at bolstering the company’s strategic plan for controlled growth.

In 2020, Merchants Fleet secured US$ 50 million in growth financing from Bain Capital Credit.

Advisors
Broadhaven is serving as exclusive financial advisor, BNP Paribas is serving as financing advisor, and WilmerHale is serving as legal advisor to Merchants. Davis Polk is serving as legal advisor to Bain Capital and the consortium, and Gibson Dunn is serving as legal advisor to ADIA. BNP Paribas has acted as the sole acquisition financing provider for the transaction.

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