A HUDDERSFIELD company has sold part of its business in a multi-million- pound deal.
Fleet management firm FMG Support, of St Andrew’s Road, Bradley Mills, has sold its vehicle rental operation to Leeds-based Nexus Vehicle Rental.
The exact value of the deal has not been revealed.
FMG said the move would raise money for continuing investment and enable the company to further its growth plans by focusing on its main areas of expertise.
The sale comes just weeks after FMG Support landed a contract from the Government’s Highways Agency to become the UK’s first national vehicle recovery manager with powers to clear abandoned and damaged cars from motorways.
To meet the demands of new business and the Highways Agency contract FMG Support is recruiting more than 100 new staff.
The contract will run for an initial three years with an option to extend it for a further two.
FMG Support said there would be no redundancies following the sale of the vehicle rental section.
All the staff there will be offered roles in either the incident management or roadside repair and recovery divisions.
Chief executive Nick Brown said: “Vehicle rental has delivered a significant commercial contribution to FMG Support over the years.
“However, for the next phase of our development it is important that we focus on the core competencies of the organisation.
“I am delighted our continuing growth allows us to not just keep our exceptional rental team, but also to employ more than 100 people over the course of the next year.
“The board and I believe it is appropriate that in order to focus on developing our incident management and roadside proposition this is the right time for this transaction”.
FMG Support’s vehicle rental management team will continue to run the business for at least three months while integration with Nexus’ online booking and management system is completed.
FMG Support, formed in 1986, is the UK’s largest independent fleet management company with services covering fleet incident management and roadside repair and recovery management.
It employs about 360 people and its annual turnover tops £70m.
Nexus is one of the country's largest independent providers of corporate vehicle rental with clients ranging from major firms and Government departments to national charities and leasing organisations.
