THE country's largest vehicle hire group, based in the North-East, has bought out one of its southern competitors.
Yesterday it was announced that Northgate Motor Holdings of Darlington had bought Banbury-based Target Vehicle Rental for £3.36m.
The buy-out has boosted Northgate's fleet of vehicles for hire by 1,100 and given the company eight new bases along the M40 corridor.
Speaking to The Northern Echo, the chief executive of Northgate, Steve Smith, said the take-over was part of a five year business plan.
He said: "The plan started in April 1999, with the aim of increasing our fleet to 50,000 and our number of bases to 100.
"This take-over will help us get closer to that target."
The latest acquisition means Northgate now operates 41,100 vehicles from 68 depots across the UK.
Mr Smith said: "We now have a hold in the Oxford and Banbury area which we did not cover before.
"Target Vehicle Rental was a competitor in the M40 corridor area so this is a good deal for us."
Northgate Motor Holdings used the expansion of the company to reaffirm its commitment to the North-East and especially Darlington.
Mr Smith said: "It is rare for a large public limited company to be based in the North.
"More often than not, companies which are successful head down South but we are happy here.
"We have just spent a lot of money refurbishing our offices so we are definitely staying here for the meantime."
Although there are no plans for more staff to be employed at the Darlington head office of the company, Mr Smith said it was good news for the workforce.
He said: "There are no new jobs to come directly from this take-over but of course it will create new work for the support staff in head office.
"However the take-over is part of our long-term plan which will in turn be good for the company and staff."
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