Global investment firm KKR has entered a binding agreement with shareholders to acquire asset leasing specialist Dawsongroup, which has been controlled by the Dawson family for over 90 years.
The change of ownership will support Dawsongroup in its “ambitious growth strategy and fleet transition in collaboration with the existing management team,” that business says. Such work will include what the purchaser adds is an acceleration of the electrification of the Dawsongroup fleet.
KKR has an existing presence in coach and bus via an earlier investment in electrification and battery storage business Zenobē. Dawsongroup Bus and Coach has already supplied zero-emission buses, including BYD Alexander Dennis Enviro200EV battery-electric single-deckers to Cobra Commercial Services on contract hire.
Purchase of Dawsongroup by KKR is part of the buyer’s global climate strategy. It is dedicated to “scaling net-zero solutions and transitioning and decarbonising higher-emitting assets” in a position that aligns with Dawsongroup’s own long-term sustainability-led ambitions.
Last year saw Dawsongroup post record financial results with earnings before interest, tax, depreciation and amortisation (EBITDA) of around £250 million. It says that the KKR deal will unlock the significant potential that is already in place via the Dawsongroup growth strategy that includes a strong presence in the UK and expansion in other markets.
Combination of the two businesses promises accelerated decarbonisation of vehicle and asset leasing solutions, a statement notes. KKR will additionally work with Dawsongroup to implement an employee ownership programme. That will provide Dawsongroup staff with an opportunity “to directly participate in the group’s future success,” it notes.
KKR has over 15 years’ experience in infrastructure investment. To date it has invested more than US$21 billion in renewable energy and climate-related work.
Speaking about the agreement with Dawsongroup, KKR Partner and Co-Head of European Infrastructure Vincent Policard says: “As one of the largest independent lessors of vehicles and temperature-controlled solutions in the UK, Dawsongroup is a key player in the decarbonisation of mobility.
“We see a significant opportunity to accelerate the electrification of Dawsongroup’s fleet, in support of the Dawsongroup management team’s focus on sustainable solutions and aligned with KKR’s commitment to advancing the transition to a low-carbon future.
“By deploying our global expertise and network, we will help Dawsongroup to drive sustainable growth, expand into new geographies, and contribute to the broader shift towards cleaner, more resilient infrastructure.”
Adds Dawsongroup CEO Stephen Miller: “KKR’s support will accelerate the launch of our sustainable growth strategy by continuing to deliver market-leading services for our customers in the UK, maintaining our EBITDA margin profile and providing a real opportunity to expand our unique offering internationally.
“We are delighted to have the backing of KKR as we enter the next phase of our development and effectively contribute to our customers’ transition to zero-emission.”
