3i exits from Zenith

3i has sold its minority stake in Zenith, one of the UK’s largest independent vehicle leasing companies to Dunedin Capital Partners, in a deal worth £27m.

3i originally backed the MBO of Leeds-based Zenith in February 2004 when it invested £6.5m. 3i will receive proceeds of £12m and will generate an IRR of 80% on the transaction.

Phil Greves, 3i investment director, said: “This has been an excellent investment for 3i, backing a first-rate team and a great business. Since our investment, the company has seen strong growth and has recently won major new contracts with BUPA and Remploy”.

Following the sale to Dunedin, the management team including Andrew Cope, MD, Mark Philips, FD and Philip Jerome, sales and marketing director and David Loesby, operations director, will remain on board.

Company advisers were Martin Jenkins of Deloitte and Alison Legg of KPMG.

The management team was advised by Tim Simpson of Ingram Forrest and Jonathan Jones of Hammonds. 3i was advised by Jonathan Proctor of DLA.

The original 3i deal team comprised Phil Greves and Colin Burnett.