Kwik-Fit Goes to PAI for £800 million

CVC Capital Partners has sold Kwik-Fit to French private equity firm PAI for £800 million. The news follows months of speculation including suggestions that a Bridgestone/Mitsubishi joint venture was pulling out in front when it came to bidding for the UK’s largest fast-fit chain. Bloomberg reports that PAI plans to open more fast fit retail outlets as a result of the acquisition.

CVC, which bought Kwik-Fit for £300 million, will more than double its money with the £800 million sale. But it is not only the investment company that stands to gain from the sale. The Times reports that the sale “will hand tens of million pounds to senior manager” led by Sir Trevor Chinn and former chief executive Tim Parker. The supposed Bridgestone/Mitsubishi cooperation was seen a strong bidder in what turned out to be a highly competitive auction because of the obvious benefits for the manufacturer of owning a large retail outfit. Likewise KKR, which owns German automotive parts retailer ATU, was believed to have a good chance.

In the end PAI trumped the other companies in an acquisition that will see it purchase Ford’s 19 per cent stake in Kwik-Fit as part of the deal. Since taking over, CVC has worked to improve margins at the group and has closed 200 of its smaller service centres. PAI is expected to back the current Kwik-Fit management team, which is led by CEO Ian Fraser. Mr Fraser, who is the former chief operating officer of Orange, is believed to have received a equity stake as part of his remuneration package, The Times reported.