Monday 2 December 2019 2:31 pm

Private equity firm Cerberus mulls Addison Lee bid

US private equity firm Cerberus is reportedly among those considering a bid for Addison Lee as the minicab company’s owner tries to secure a quick sale.

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Cerberus Capital Management submitted a bid for the minicab firm ahead of a recent deadline for offers, but it is unclear how formal the proposal was, according to Sky News.

Addison Lee is currently owned by private equity giant Carlyle, which is looking to offload the company before the end of the year. 

Carlye began an auction process for Addison Lee six months ago, but is reportedly yet to receive an offer that values the company at more than its £230m of outstanding debt. 

This is likely to mean the minicab firm undergoes a debt-for-equity swap or pre-pack administration as part of any change of control, Sky News reported, citing insiders. 

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Addison Lee was valued as high as £800m earlier this year, but has been hit by substantial losses and stiff competition from ride-hailing apps such as Uber.

Addison Lee declines to comment on the reports. City A.M. has contacted Cerberus for comment.