Private equity firm HgCapital has agreed to sell vehicle lessor Zenith to fellow private equity firm Bridgepoint in a transaction totalling £750m (€878.4m).

The Leeds-based vehicle lessor offers contract hire, salary sacrifice, fleet management, and short-term hire, and operates an 85,000-strong fleet.

Zenith has over 500 employees, and also has operations in Solihull and Wokingham.

HgCapital first invested in Leasedrive in December 2013, and completed a merger between Zenith and Leasedrive in February 2014. Leasedrive itself merged with Masterlease in 2010.

Tim Buchan, chief executive officer at Zenith, said: “We thank HgCapital for their contribution and are pleased to welcome Bridgepoint as our new partner.

“We look forward to working together on our long-term strategy of continued investment in product and system developments.”

Emma Waford, partner at Bridgepoint and head of its business services sector team, said: “Zenith is already best-in-class with a proven business model that has had an unbroken track record of growth over a long period.

“It benefits from an exceptional management team and, with them, we believe that the business can continue its impressive growth trajectory through its continued focus on customer service, technology and targeted acquisition activity.”

HgCapital was supported by Evercore, Deloitte, OC&C, KPMG, Weil Gotshal & Manges and Sidley Austin on the Zenith sale.