Kwik-Fit For Sale
In February, Kwik-Fit enlisted the help of Deutsche Bank to assist the company in considering its strategic options. Initially the owners, CVC Capital Partners, had pursued the IPO route in what would have been one of the biggest floatations in London in recent years. However, industry sources told Reuters that the repair chain is likely to reach an even higher price from private equity firms which are aggressively competing for deals. These firms are attracted to businesses like Kwik-Fit because they have strong cash-flows which make it easier for the buyout groups to weigh large debts against the companies in order to fund their acquisitions.
Trade buyers, such as Bridgestone or Michelin, could also be interested, Reuters reported. Kwik-Fit is Europe’s biggest independent auto parts, repair and replacement specialist with 2,300 outlets, including Speedy in France and Pit Stop in Germany. In the UK the company has 150 more outlets than its nearest rival. In 2003 Kwik-Fit reported a turnover of £730 million pounds. In January, Kwik-Fit appointed Ian Fraser as chief executive. Mr Fraser was previously chief operating officer of Orange, the UK mobile phone operator.
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