Bain Capital, the Abu Dhabi investment company completes the purchase of Merchants Automotive Group

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October 19 – Bain Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority, along with the management team of Merchants Fleet, have completed the acquisition of Merchants Automotive Group.

The company’s management team will retain their current roles, Merchants said in a press release Wednesday. Chief Executive Officer Brendan P. Keegan assumed the additional roles of Chairman and President.

Merchants Fleet, the nation’s fastest growing fleet management company, provides vehicle fleets and vehicle management to 20 unique industries. It is headquartered in Hooksett and has an innovation center in the Chicago area.

Merchants Auto, the 60-year-old company’s flagship, sells used vehicles in Hooksett.

But Merchants’ fleet business has long eclipsed its auto sales.

Merchants Fleet is the fourth largest fleet management company in the United States, with over 165,000 units in North America. Its business model is focused on electric vehicles, technology and innovative services.

The company said it has existing reservations for 40,000 electric vehicles, along with an investment and commitment of $2.5 billion.

“Merchants Fleet has been at the forefront of fleet services for 60 years, and this agreement secures our leadership position for another 60 years and beyond,” Keegan said in a statement. “Through the acquisition by Bain Capital, ADIA and our leadership team, Merchants is positioned to further accelerate innovation, catalyze the electric vehicle revolution, and fearlessly move the commercial fleet forward.”

Broadhaven served as exclusive financial advisor. BNP Paribas acted as financing advisor. WilmerHale served as legal counsel to the Merchants property. Ropes & Gray served as legal counsel to the merchants’ management. Davis Polk served as legal counsel to Bain Capital. Gibson Dunn served as legal counsel to ADIA. Paul Weiss served as legal counsel for the financing.

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