Assetco sells PFI business
20 August 2012
The company that runs London’s fire engines through a PFI deal has sold the business for just £2.
Assetco has sold off its UK vehicle leasing and maintenance businesses to private equity firm AB&A Investments.The company sold the businesses claiming the contracts, which also include a deal with Lincoln fire authority, were “based on a flawed business and financial structure”.
Assetco blamed the contracts as “the principal reason” for the firm’s significant decline in value over recent years.
It said the companies being sold had made a pre-tax loss of £16.5m during the 18 months to 30 September 2011.
In June last year, it was reported that several companies were interested in buying Assetco, after flirting with insolvency during 2011.
