Singapore-listed transport giant ComfortDelGro has accelerated its global expansion strategy with a takeover of London’s premium private hire cab service, Addison Lee, for £269.1m.
The deal, which will take place through its subsidiary Cityfleet Networks, is set to drive the growth of Comfortdelgro, boosting its taxi and private hire fleet to over 34,000 vehicles worldwide.
Upon completion, Addison Lee’s London network of 7,500 drivers and 5,000 vehicles, will join with Cityfleet Networks’ existing operations across UK cities such as Liverpool, the Wirral, Chester and Aberdeen.
Addison Lee boss Liam Griffin said: “Over the last four years, ComfortDelGro has demonstrated its deep knowledge of the business, and a clear understanding of our customers’ and drivers’ needs.
“This, alongside the strength and heritage of the Addison Lee brand, has positioned us perfectly for further expansion into the premium segment. Comfortdelgro is a perfect complementary fit for us.
He added: “They share our philosophy, vision, and ambition for the Addison Lee brand and bring significant international industry expertise to the business.”
Griffin and the current key management are set to remain at the firm following the takeover.
Comfortdelgro’s managing director and group chief executive, Cheng Siak Kian said: “Beyond expanding our footprint in the UK, this acquisition will enable us to use Addison Lee’s expertise to deepen and scale our premium point-to-point capability globally.
“It will also strengthen our overall point-to-point proposition, creating strong synergy with our existing businesses,” he added.
Addison Lee reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of £27.4m for the financial year ended August 2023 on sales of £224.8m, as Londoner’s propped up demand for its higher-end, premium offering.