BT continues restructure with fleet management unit sale

BT sale
(Image credit: BT)

BT has sold its fleet management business to private equity firm Aurelius as part of an ongoing restructuring programme at the UK’s largest telco.

Established in 2002, BT Fleet Management is responsible for 80,000 vehicles for 26 companies across the UK – including BT itself.

The unit is based in Solihull and has a national network of 65 in-house garages and 500 partner facilities. In total, it employs more than 950 people.

BT fleet management

As part of the deal, the division – which will be rebranded within the next 12 months – will continue to manage BT’s own fleet. The value of the transaction has not been disclosed but is expected to be completed in the second half of this year.

“With BT’s renewed focus on investing in the best fixed and mobile networks in the UK, and with BT Fleet Solutions well positioned to achieve further growth, the time is right for the business to find a new home,” said Gerry McQuade, BT Enterprise CEO.

“Aurelius is ideally placed to support the next phase of BT Fleet Solutions’ development and deliver new services to its customers. I’d like to thank our colleagues in BT Fleet Solutions for all they have done for the business and the wider BT Group and wish them every success for the future.”

A restructuring programme at BT was announced by former CEO Gavin Patterson last year and will see 13,000 jobs cut, mainly in back office and middle management roles, and a move to base its operations at 30 sites around the UK.

It is hoped the changes will save £1.3 billion, allow the more streamlined company to react more rapidly to market trends, and means it can get closer to customers. There will be fewer leadership roles with greater responsibilities and more jobs will be created in engineering and customer service.

Last month, the company confirmed a deal to sell its London headquarters at St Pauls for £210 million and to lease the building for 30 months while it moves to a new facility at Aldgate.