AN expanding vehicle rental firm has been taken over by a market rival.

Transflex, headquartered in Stockton, has been bought by TOM Vehicle Rental.

Bosses say the deal, completed for an undisclosed sum, will see Transflex’s 3,500-strong car and commercial vehicle fleet move under the TOM umbrella.

They added Transflex’s senior team will also join its new owner’s executive team.

The agreement, understood to be a multi-million pound deal, comes just weeks after Transflex moved to a new Stockton base, which bosses at the time said had created jobs.

Peter Abdale, Transflex’s managing director, said: “We’re delighted to be joining TOM.

“It is a company that shares our ambitious growth plans and our resolute commitment to high-quality flexible vehicle rental service.

“Under TOM’s ownership, the Transflex brand will be able to offer its valued customers access to a UK-wide branch network and an enlarged asset inventory.”

TOM, which operates predominantly across Scotland and Northern England, was founded more than 25 years ago as an MOT station.

However, Robert Stewart, chief executive, said the business was keen to extend its presence in the hire sector, highlighting a management buyout last year as a sign of its intent.

He also confirmed it is the first acquisition made by TOM since Equistone Partners Europe supported the company’s management buyout in December 2016.

He added: “The purchase of Transflex comes at the right time and is a strong fit with our strategy to increase our UK market share by adding to our existing network, increasing our fleet size and customer base through Transflex’s established presence in North-East England and other key regions.

“Since its establishment in Stockton in 2011, Transflex has built a strong reputation for providing high-quality vehicles and excellent customer service and this will continue going forward.

“The acquisition enables us to continue improving customer service through greater UK coverage and a larger available fleet offering.”

Newcastle-based commercial law firm Muckle advised Transflex shareholders on the deal, with support from its real estate team.

TOM was supported by legal firm with Travers Smith, with Grant Thornton providing financial and commercial due diligence advice.

Matthew Walsh, associate at Muckle, added: “We are delighted to have worked closely with the Transflex team to help secure the next stage in their growth and development.

"For a committed North-East business such as Muckle, it is incredibly encouraging to see this highly successful local company move forward as part of the expanding TOM business."

Last month, The Northern Echo reported how Transflex had spent £75,000 on new vans to help keep a customer on the road.

The business said the investment would allow Middlesbrough-based Greenbank, and its team of field service engineers, to continue operations across the region.

Transflex’s Stockton base in complemented by depots in Warrington, Buckinghamshire and Bristol.