Friday, April 19, 2013
Addison Lee boss John Griffin bags a £300 million fare as he sells minicab firm
Founded with one car in Battersea in 1975, father and son team, John and Liam Griffin, sold the business today to the Carlyle Group — which also owns the RAC and health food chain Holland & Barrett.
The Griffins and the family of Lenny Foster, who co-founded the minicab empire, will share those spoils while retaining a small stake in the business.
It has been quite a rise to fortune for John Griffin as, in the Seventies, he was forced to ditch his apprenticeship as an accountant and turn to mini-cabbing in order to make ends meet and rescue his father’s business.
Today, Addison Lee uses a cutting edge IT system to manage bookings for its 4500 cars after emerging as the major competitor to London’s black cabs.
Under the terms of the deal, the elder Griffin, John, will remain as chairman and the younger as chief executive. Drivers who work for the company don’t own shares and so will not get a windfall after today’s deal.
Liam Griffin told the Evening Standard: “We’re very much concentrated in central London but now we can look at going further afield within the M25, like the suburbs. We’ll look primarily at that area first.”
Carlyle Europe Partners managing director Andrew Burgess said he was keen to roll out Addison Lee to other cities in the UK which could benefit from the cabbie’s use of apps and technology that creates such an “efficient dispatch” system.
Internationally, Addison Lee already has burgeoning joint ventures in Paris and New York and the younger Griffin said that Carlyle’s deep international experience — it has 33 offices around the world — would help Addison Lee make major breakthroughs overseas.
The cabbie is also looking to widen the range of accounts with blue-chip corporates, which should mean that it will end up hiring more than the 4000 cab drivers that Addison Lee employs today.
John Griffin courted controversy last year, when he spoke out against London cyclists.
He claimed they were to blame for their own injuries on the capital’s busy roads, arguing that they “leap onto a vehicle which offers them no protection except a padded plastic hat”.
He added that people were safer taking taxis as they would be “sitting inside a protected space with impact bars and air bags and paying extortionate amounts of taxes on our vehicle purchase, parking, servicing, insurance and road tax”.
He also argued that for compulsory training and insurance for London’s cyclists, who were sufficiently angered to accuse him of “victim blaming”.
Carlyle was advised on the transaction by Deloitte, OC&C and Latham & Watkins. Addison Lee was advised by Catalyst Corporate Finance.
Source: Evening Standard.
Posted by Editorial at 2:32 PM