A change at the top has been announced at A.T.U., the European automotive services provider that Michelin acquired a 20 per cent share in earlier this year. After serving as chief executive officer for the past three years, Jörn Werner is stepping out of the company’s operative business and has become chairman of the company’s Supervisory Board. He succeeds Fabien Derville, who is president of majority shareholder, Mobivia Groupe.
The Michelin Group has purchased a 20 per cent share in German automotive services provider A.T.U. (Auto-Teile-Unger). The minority stake was acquired from French automotive maintenance and repair services group Mobivia Groupe for 60 million euros; following the acquisition, Mobivia and Michelin intend to combine their expertise in order to further develop A.T.U. in Germany, Austria and Switzerland.
German tyre retail and fast fit chain A.T.U. has been sold to France’s Mobivia Groupe. Several hours ahead of a predetermined deadline, New York-based hedge Fund Centerbridge Partners LP, which has owned the network since 2013, successfully negotiated a significant rent reduction with the landlords of its outlet sites, including Lino Management, owner of 273 A.T.U. sites. According to reports, the annual leasing cost for the centres located on Lino-owned properties will fall from 57 million to 30 million euros. The rent reduction clears the way for Mobivia Groupe’s acquisition of the more than 600 A.T.U. centres in Germany, Austria and Switzerland.
A.T.U., one of Germany’s largest tyre and car parts retailers, is once again for sale. According to information from market observers, the company is battling serious financial difficulties. US-based private investment firm Centerbridge Partners, which acquired a controlling share in A.T.U Auto-Teile-Unger GmbH & Co. KG from Kohlberg Kravis Roberts (KKR) at the end of 2013, has now contracted German restructuring expert Hans-Joachim Ziems. The presence of Ziems doesn’t bode well for A.T.U., which sells around 3.5 million tyres in Germany each year.
German-owned fast-fit network A.T.U. reports reaching a “decisive milestone in its financial repositioning.” The loss-making company’s management and majority shareholder (private equity group KKR) have reached a lock-up agreement with more than 80 per cent of its key bond creditors to reduce A.T.U.’s debt by more than €600 million and inject some €100 million of fresh equity into the firm. In addition, A.T.U. has received a senior secured, 2018-due credit line of more than €75 million from HayFin Capital Management.
For a number of years there has been little in the way of flotations on the German Stock Exchange, but suddenly there has been a flurry of activity. German Post wants to float its subsidiary Postbank on June 21, but the fast-fit service chain A.T.U (Auto-Teile-Unger) wants to forestall the Post and get in with its own flotation beforehand, at the beginning of June. The flotation is being handled by Credit Suisse First Boston and HSBC, who expect to raise one billion Euros. UK investment company Doughty Hanson is the majority shareholder and it is not yet known whether it will sell its entire holding or retain a stake in A.T.U.
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