Insider Media Limited

Municipal hire company WCR Vehicle Hire, based in Wednesbury, has been bought by Leicestershire businessman Patrick Tierney at a cost of £15m.

The deal comes just months after the firm was bought out of administration by its then management team. The new company will now be called Phoenix Vehicle Hire and the deal also includes the transfer of a fleet of 255 vehicles.

Tierney, the former managing director of vehicle provider Go Plant, has safeguarded 28 jobs at the Wednesbury-based plant with the purchase.

He said: “It is a company which has a good reputation within the industry and we strongly believe it has the potential to go from strength to strength.

“These are exciting times for the new company which now has increased financial stability and the support of a new senior management team.”

Phoenix was advised on the acquisition by Heath Walker and Ben Rookes of Cooper Parry Corporate Finance in Leicester and Rick Smyth and Jay Vaghani of Harvey Ingram.

Equity funding was provided by a consortium of private investors with invoice discounting facilities being provided by Jason Holland of Leumi ABL.

Rick Smyth, of Harvey Ingram, said: “WCR and its sister company PFB Vehicle Hire, based in Wednesbury, West Midlands, went into administration earlier this year before being sold to its then management team.

“However, they were unable to put together a financial restructuring deal which saw the business to continue suffering cash flow pressures. The acquisition by Phoenix has provided a valuable solution which protects the position of lease creditors, customers and employees.”