Kwik-Fit: Business as usual for fleet customers

Kwik Fit Group’s fleet division has added its voice to Stapleton’s in saying that, following the tyre retail giant’s takeover by Itochu, it is business as usual. In a press statement the fleet business said: “following the sale agreement it is ‘business as usual’ for fleet and retail customers across its network in the UK as well as in the Netherlands and France where the company also operates.”

The statement continued: “Stapleton’s has a reputation for being the UK leader in tyre wholesaling – a sector that Kwik-Fit is not involved in – so making the two businesses complementary.”

Speculation on the future ownership of Kwik-Fit has existing for several months and the announcement of the agreement between PAI and Itochu is being pitched as delivering “long-term stability for the business as it continues to expand its centre and mobile product base to both the corporate and retail sectors.”

In parallel with Kwik-Fit Fleet’s statement, Itochu representatives said they are confident of their ability to increase profits at Kwik-Fit: “In Britain, car sales are growing at annual pace of 2 per cent and we expect stable operations there,” Satoshi Kikuchi, managing executive officer at Itochu, told a press conference in Tokyo.

Bloomberg reported that the yen’s gain against the pound “was also a factor in the purchase.” According to the business news service, Itochu aims to raise operating profit at Kwik-Fit to 13 billion yen (£97.7 million; 114.7 million euros; $159 million) a year in three years from 9 billion yen now.

Related news:

• Itochu’s Kwik-Fit and Stapleton’s to be run as separate entities

• Kwik-Fit confirms Itochu is new owner

• Report: Itochu Buys Kwik-Fit for £637 million

• Kwik-Fit Appoints New Fleet Sales Director

• Fleet MoTs, Servicing Kwik-Fit Growth Areas in 2010