Redde Northgate, a vehicle rental and accident management firm, has confirmed and completed the acquisition of UK-based Nationwide Accident Repair Services, which it purchased out of administration.
The purchase cost involves an upfront payment of £11 million, plus a deferred payment of up to £5 million depending on how much trade business Redde Northgate can retain on “satisfactory terms”.
Nationwide is the UK’s largest wholly owned repair network and the largest independent accident repair company in Europe. Out of 102 body shop sites, Redde Northgate will acquire 77 of them and around 2300 staff members, but more than 500 jobs will be lost from the remaining sites that are being shut down.
Before the transaction, Redde Northgate did not have an in-house repair capability, but says it has long considered building repair capabilities in the United Kingdom as the group already runs repair facilities in Spain. Redde Northgate says the transaction offers the group the opportunity to deliver on that goal quickly with a strong team, well located sites and an existing flow of business, using surplus repair capacity with its own volumes.
“At the time of the Redde Northgate merger, we set out our vision to become the leading integrated mobility solutions provider,” said Martin Ward, CEO of Redde Northgate. “This acquisition, our first post-merger, is in line with that vision and significantly increases our strategic and operational capability to support a wider number of business partners requiring automotive repairs. We expect this acquisition will open up new markets to the Group, and in combination with an established pipeline of repair work from existing Group companies, such as FMG, it is well placed to maximise future opportunities.
“We welcome those Nationwide colleagues who will be joining the Redde Northgate Group and we look forward to creating new value and service offerings for all our stakeholders.”