Rivus Fleet Solutions has been sold to the Metropolitan Police Service - its largest customer - after the company called in the administrators last week.
The deal sees 165 jobs saved at the company and ensures the fleet services provided by Rivus Fleet Solutions, before it collapsed, will continue, with the Met delivering elements of the service in house, according to the administrators.
The company, which has its headquarters in Birmingham, offers fleet management, repairs and maintenance services for LCV fleets. It was created when private equity investors Aurelius acquired BT Fleet Solutions in 2019.
The collapse of Rivus Fleet Solutions Limited follows a tough year which saw the company lose a major customer in July 2023, which had delivered around 70% of the firm’s revenue.
As a result Rivus was forced to launch a major restructuring of its light commercial vehicle (LCV) operations in October 2023, which saw 48 LCV garages closed to reduce Its labour and rental cost base.
The company put in place plans to drive organic growth with a more agile business model and leaner overheads, and in November won a major fleet management contract with the Met Police, in a deal accounting for 85% of the company’s business.
Despite these efforts the company was forced to call in the administrators last week on 21 June, appointing joint administrators Tim Higgins, Jane Steer and Zelf Hussain.
In a statement, the administrators said: ”Immediately following appointment a sale of the majority of Rivus Fleet Solutions and its assets was transacted to the Metropolitan Police Service in a deal that safeguards 165 jobs and secures the delivery of crucial services to the Met.”
The statement added: ”The sale has no impact on the trading business of Rivus’ sister Pullman Fleet Solutions Limited (trading as Rivus HGV)” which Aurelius acquired in 2020.
In its most recent annual results for the year to 31 December 2022, published in December last year, Rivus Fleet Solutions Limited reported turnover rising to £192m (2021: £162.5M) and pre-tax profit up more than half to £4.8m (2021: £1.7m).
It has operating licences for 16 trucks and nine trailers.
