TIP Trailer Services to acquire truck and trailer rental company PEMA

TIP Trailer Services acquisition of PEMA : French banking group Societe Generale has entered into an agreement to sell truck and trailer rental company PEMA to TIP Trailer Services, a portfolio company of infrastructure investment manager I Squared Capital, for an undisclosed price.

Currently, PEMA manages a fleet of approximately 19,000 vehicles in seven European countries — Germany, Belgium, Denmark, Poland, Sweden, the Czech Republic, and Switzerland. Its fleet of vehicles comprise major brands such as Krone, MAN, Volvo and Schmitz Cargobull.

Since 2008, the truck and trailer rental company has been part of the GEFA Group, which is Societe Generale’s equipment finance arm. Societe Generale Equipment Finance, through its German subsidiary GEFA Bank has a 100% stake in PEMA group.

TIP Trailer Services, on the other hand, is specialized in operational leasing of transportation equipment in Europe and Canada. Based in Amsterdam, TIP Trailer Services claims to have a large and diverse trailer rental and leasing fleets with more than 70,000 units.

TIP Trailer Services has more than 2000 employees and caters to its customers from 98 locations across 17 countries in Europe and Canada.

TIP Trailer Services acquisition of PEMA. Photo courtesy of TIP Trailer Services.

Commenting on TIP Trailer Services acquisition of PEMA, Bob Fast – President and CEO of TIP Trailer Services, said: “The combined companies will have nearly 89,000 trailers and trucks as well as over 100 workshops offering the largest repair network in Europe and Canada and provide a one-stop shop solution for a wide variety of commercial vehicle equipment,” noted Bob Fast, President and CEO of TIP Trailer Services.

“Our customers will have a seamless service partner across Europe and Canada, simplifying their fleet management and enabling them to focus on their core business activities while enjoying TIP’s strong reliability and customer service.”

For Societe Generale, the sale of PEMA to TIP Trailer Services is said to have a positive impact on its CET1 ratio of about two basis points, however, will have a negative impact of EUR 43 million on the Group’s Q2 2019 results following goodwill and fixed asset impairments in the application of IFRS 5.

Philippe Heim – Deputy Chief Executive Officer of Societe Generale group in charge of International Retail Banking activities, Financial Services and Insurance, commenting on TIP Trailer Services acquisition of PEMA, said: “This transaction illustrates the dynamic management of the Group’s business portfolio and is another step in the execution of its refocusing program.

“Societe Generale will pursue its strategy of profitable growth in equipment finance and leasing through its subsidiaries ALD and Societe Generale Equipment Finance.”

Subject to the approval of the relevant antitrust authorities, TIP Trailer Services acquisition of PEMA is expected to be completed in the coming months.