20 August 2015 – acquisition
The accident management and legal services group Redde has acquired the leading fleet accident management group FMG for £43.2m. The latter, which is based in Yorkshire, undertakes outsourced fleet management and other services and its customers include leasing companies, fleet insurers and brokers, car rental companies, blue light organisations and local councils. The acquisition will broaden Redde’s accident and fleet management services and allow it to enter additional industry sectors. The acquisition will be mainly funded with cash with a small element comprising shares in Redde. The acquisition is expected to be immediately earnings enhancing and cash generative and we maintain our recommendation of BUY.