KKR to Acquire Dawsongroup to Accelerate Growth and Support Fleet Transition

Rhea-AI Summary

KKR has entered into a binding agreement to acquire Dawsongroup, a leading independent asset leasing business. The acquisition, part of KKR's Global Climate strategy, aims to scale net-zero solutions and support Dawsongroup's sustainability-led ambitions. Dawsongroup, headquartered in Milton Keynes, UK, operates across 11 countries with over 1,150 employees, specializing in vehicle and refrigerated box leasing.

The company posted record performance with Group EBITDA of approximately £250m last year. Under KKR's ownership, Dawsongroup plans to expand its markets and accelerate fleet electrification. KKR will implement an employee ownership program, allowing staff to participate in the company's future success. The transaction, pending regulatory approvals, builds on KKR's extensive experience in infrastructure investing, having deployed over $24 billion in UK equity and $21 billion in renewable energy and climate-related investments from its infrastructure platform.

Positive

• Record financial performance with Group EBITDA of £250m
• Strategic expansion into new geographic markets planned
• Implementation of employee ownership program
• Access to KKR's extensive infrastructure investment expertise and network
• Acceleration of fleet electrification and sustainable solutions

Negative

• Transaction subject to regulatory approval risks
• Potential integration challenges during ownership transition

Insights

Financial Analyst

This strategic acquisition marks a substantial move for KKR, targeting the lucrative asset leasing market with Dawsongroup's impressive £250m EBITDA performance. The deal aligns perfectly with the growing trend of infrastructure investments in sustainability-focused businesses. Dawsongroup's established presence across 11 countries and diverse revenue streams from vehicle leasing and refrigerated solutions provide significant scaling opportunities.

The transaction's value proposition centers on three key aspects:

• Robust financial performance with strong EBITDA margins
• Established market position with 1,150+ employees and multinational presence
• Strategic fit with KKR's $21B infrastructure platform focusing on renewable energy investments

The deal structure, incorporating an employee ownership program, typically enhances operational performance and staff retention. This acquisition represents KKR's broader strategy of deploying capital in the UK market, where they've already invested $24B across various platforms.

Climate Tech Specialist

This acquisition is strategically positioned within the rapidly evolving fleet electrification market. Dawsongroup's existing capabilities in EV deployment, solar integration and battery storage solutions present a ready platform for accelerated decarbonization of commercial fleets. The synergy with KKR's other climate investments, particularly Zenobē, could create a powerful ecosystem for transportation electrification.

The timing is particularly advantageous given the regulatory push toward zero-emission vehicles across Europe. Dawsongroup's "Smarter Asset Strategy" positions them to capitalize on the growing demand for fleet transition services, while KKR's expertise and capital can accelerate the electrification of their asset portfolio. This move could potentially reshape the commercial vehicle leasing landscape as businesses increasingly seek sustainable fleet solutions.

Market Research Analyst

The asset leasing market is undergoing a fundamental transformation driven by sustainability requirements and fleet electrification mandates. This acquisition positions both companies advantageously in this evolving landscape. The deal's structure preserves operational continuity while enabling rapid expansion into new markets.

Key market implications include:

• Consolidation in the asset leasing sector, potentially triggering similar M&A activities
• Acceleration of fleet electrification initiatives across Europe
• Enhanced competitive position against traditional leasing providers

For KKR investors, this represents a strategic expansion in the sustainable infrastructure sector, complementing existing investments like Smart Metering Systems and Viridor. The focus on decarbonization solutions aligns with increasing institutional investor demand for ESG-focused assets.

New ownership will support Dawsongroup’s ambitious growth strategy and fleet transition in collaboration with existing management team

LONDON & MILTON KEYNES--(BUSINESS WIRE)-- Dawsongroup (the ”Group”), a leading independent asset leasing business which provides a diverse range of business-critical solutions, and KKR, a leading global investment firm, today announce that KKR has entered into a binding agreement with the shareholders of Dawsongroup to acquire the Group. The acquisition will be made as part of KKR’s Global Climate strategy, dedicated to scaling net-zero solutions and transitioning and decarbonizing higher emitting assets, which closely aligns with Dawsongroup’s long-term sustainability-led ambitions.

Headquartered in Milton Keynes, UK, Dawsongroup has developed a solid platform with first-rate supplier relationships, a diversified customer base and is a supportive employer to over 1,150 employees across 11 countries. Since its inception in 1935, Dawsongroup has grown to be a sector leader in asset leasing, including vehicles and refrigerated boxes, with a broad and integrated business model that involves the customisation of assets to customer specification as well as maintenance and repairs. Dawsongroup has developed a strong position in the UK and a growing presence overseas with its highly attractive Smarter Asset Strategy, enabling businesses to cost-effectively transition to net zero.

As a fast-growing company with a strong track record of year-on-year growth, Dawsongroup has an ambitious, sustainable growth strategy in place to unlock its significant potential. Last year it posted a record performance with Group EBITDA of c.£250m and under new ownership, management will build on this strong platform to expand the markets it serves throughout the entire supply chain.

The Dawson family has controlled the Group for over 90 years, overseeing its significant growth to date. Joining forces with KKR will enable Dawsongroup to deliver on the next stage of its development, benefiting both customers and employees. As a business which effectively utilises EV, solar, Stage 5 generators, and battery storage as part of its unique energy focused service capabilities, Dawsongroup and KKR’s strategic partnership will significantly accelerate the decarbonisation of vehicle and asset leasing solutions. KKR will also work with Dawsongroup to implement an employee ownership programme, providing Dawsongroup employees with the opportunity to directly participate in the Group’s future success.

Stephen Miller, CEO of Dawsongroup commented: “KKR’s support will accelerate the launch of our sustainable growth strategy by continuing to deliver market-leading services for our customers in the UK, maintaining our EBITDA margin profile and providing a real opportunity to expand our unique offering internationally. We are delighted to have the backing of KKR as we enter the next phase of our development and effectively contribute to our customers’ transition to zero emissions.”

Vincent Policard, Partner and Co-Head of European Infrastructure at KKR, said: “As one of the largest independent lessors of vehicles and temperature controlled solutions in the UK, Dawsongroup is a key player in the decarbonisation of mobility. We see a significant opportunity to accelerate the electrification of Dawsongroup’s fleet, in support of the Dawsongroup management team’s focus on sustainable solutions, and aligned with KKR’s commitment to advancing the transition to a low-carbon future. By deploying our global expertise and network, we will help Dawsongroup drive sustainable growth, expand into new geographies, and contribute to the broader shift toward cleaner, more resilient infrastructure.”

Freya Dawson added: “On behalf of the Dawson family, I am extremely proud of Dawsongroup’s achievements to date and we are highly supportive of this strategic partnership with KKR. With the Dawson family’s backing and long-standing support from employees, the Group has evolved into the innovative asset leasing platform it is today. Combining Dawsongroup’s highly experienced management team with the knowledge and experience of the KKR team, we believe the impressive trajectory achieved to date can accelerate even further and we look forward to its future success.”

With over 15 years of experience in infrastructure investing, KKR has deep expertise in renewable energy and climate-related investments and has invested more than $21 billion in this sector from its infrastructure platform alone. To date, KKR has made three investments from its Global Climate strategy, including in Zenobē, a UK-based market leader in transport electrification and battery storage solutions. Meanwhile, KKR has been investing in the UK for over two decades, having deployed over $24 billion in equity across all investment platforms, including over $5 billion in sustainability-related investments over the past three years in investments such as Smart Metering Systems, Citation, ERM, John Laing and Viridor.

The transaction is subject to the receipt of regulatory approvals.

About Dawsongroup

Dawsongroup is a leading independent asset leasing platform with a robust market position, providing a diverse range of business-critical solutions for longstanding blue-chip customers. Its Smarter Asset Strategy helps businesses improve efficiency and flexibility by offering high-quality equipment without the cost of ownership. This approach enables companies to access the latest technology, scale operations, and reduce capital expenditure, allowing them to adapt quickly to market demands and focus on growth.

Dawsongroup is UK-headquartered business founded in Leighton Buzzard in 1935, has developed a solid platform with first-rate supplier relationships, a diversified customer base and is a supportive employer to over 1,150 employees across 11 countries. For additional information about Dawsongroup, please visit the Group’s website at www.Dawsongroup.co.uk

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121579770/en/

For Dawsongroup:

Richard Mountain / Victoria Hayns, FTI Consulting

dawsongroup@fticonsulting.com

+44 20 3077 0455

For KKR:

Alastair Elwen, FGS Global

KKR-LON@fgsglobal.com

+44 20 7251 3801

Source: KKR & Co. Inc.

FAQ

What is the value of Dawsongroup's EBITDA in the latest financial report?

Dawsongroup reported a record Group EBITDA of approximately £250 million in their latest financial performance.

How will KKR's acquisition affect Dawsongroup employees?

KKR plans to implement an employee ownership program, providing Dawsongroup's 1,150+ employees the opportunity to participate in the company's future success.

What is KKR's investment experience in sustainability-related projects?

KKR has invested over $21 billion in renewable energy and climate-related investments from its infrastructure platform and over $5 billion in sustainability-related investments in the UK over the past three years.

How many countries does Dawsongroup currently operate in?

Dawsongroup operates across 11 countries with over 1,150 employees.

What is the strategic focus of KKR's acquisition of Dawsongroup?

The acquisition focuses on scaling net-zero solutions, transitioning and decarbonizing higher-emitting assets, and accelerating Dawsongroup's sustainable growth strategy and fleet electrification.