Transport companies have long been the main beneficiaries of a new law allowing the sale of their trucks and vans to third parties.
Now a company called AaaCooper Transport Group is about to sell most of its fleet, including some of its truck-hauling business, for $500 million.
The group is looking to raise the money by selling off a third of its stake in Dublin-based transport company CAA and leasing the fleet for about $500 per vehicle.
It will also be selling the vans and trucks it leases to third-party truckers for about a third more.
The move is seen as a response to growing competition from low-cost alternative operators such as AaaTruck, which have emerged as a viable alternative to fleet-based operators such in the United States and Germany.
AaaCargo and AaaHaul have also emerged as alternatives to fleet operators, but the deal is the first of its kind.
“This is a very exciting time for Aaa and for Dublin as we continue to move into a new era of the economy,” said Aaa CEO Michael Ryan.
Aaaaa’s deal to sell the fleet will be structured as an “open book” offering, with the company taking a 50 per cent shareholding.
This means the company will retain a significant stake in the fleet and will pay a management fee.
It has also agreed to a non-exclusive agreement for the lease of its trucks and a 10-year contract to operate its fleet on a fully-integrated and autonomous system.
Aaaa will not be allowed to lease the vehicles directly, but will instead use the fleet as an asset that can be leased to third party truckers, Aaa said in a statement.
“The company is pleased to be able to make this transaction,” said Ryan.
“Our focus is on delivering a competitive, secure, efficient and low-emission transport network that is driven by public and private sector stakeholders.
This is our first foray into this area and our aim is to make a significant contribution to the transition to a more electric future.”
Aaa will be able lease the fleet in three phases, with each phase costing between $500,000 and $1 million per vehicle, according to the company.
The first phase of the lease will be a three-month period, followed by three years of leasing the vehicles.
The second phase of leasing will be for the next three years.
The company said that the lease price would not include any maintenance fees, including any associated capital costs.
AaCargo will be offering the lease through an “end-to-end” leasing model.
It is not yet clear how many vehicles the company plans to sell, but it has said it is targeting between 50 and 100 vehicles a year.
“In light of our recent investment in new infrastructure, the launch of Aaa’s new fleet, and the continued development of its new business model, we are in a position to continue to grow our fleet,” said CEO Michael Glynne.
“We are proud to have a strong track record of delivering successful fleet solutions and we look forward to working with our customers and partners to deliver the best possible experience.”
AaHaul is another example of an alternative vehicle operator that has emerged to compete with fleet operators.
Aha has built up a strong reputation for reliability and reliability for the vehicles it operates, and has been building its fleet over the past few years.
Asha said it will be selling a similar deal to Aaa to lease its fleet to third drivers.
“Aaa has shown its value in delivering safe, reliable transport for passengers across the country and now it looks like we are getting another opportunity to offer that value in the same way,” said co-founder of AaHa, Peter Byrne.
“Having the option to lease a fleet from Aaa is a game changer for the whole of the transport industry.”
Aaaa said that it had no immediate plans to move its fleet from Ireland.
Aiia said it would be selling its truck business in the UK and would not be making any immediate changes to its fleet structure.
Aiaa said that its existing fleet was more than 80 per cent of the total in operation in the EU.
Aaea said its fleet had about 200,000 vehicles.