CVC Capital and Ford Shake Hands On Kwik-Fit

Ford has announced its intent to sell Kwik-Fit to CVC Capital Partners, a leading European Equity group. The price being paid is 330 million pounds in cash and a note that will be paid as CVC obtains outside financing. The proposed transaction will be completed using a new company formed for the purpose, and financed by funds under the management of CVC.

Ford will retain a 19 percent equity interest in the new company in order to benefit from the business’s future growth. The sale is expected to be completed in the fourth quarter of 2002 and is subject to regulatory approvals. Ford will record a one-time, after-tax charge of approximately $500 million in the third quarter of 2002 related to the sale of Kwik-Fit.

Collision Team America has also been sold, though Ford has withdrawn from the sale of Hertz Equipment Rental Corporation.”We are pleased to have found such suitable owners for both Kwik-Fit and Collision Team of America,” said Martin Inglis, Ford group vice president, business strategy. “Although these are good businesses, they don’t align with our back-to-basics strategy.