FT: PAI Pumps £20 million into Kwik-Fit
PAI, the French private equity fund has owned Kwik-Fit since 2005, is reportedly planning to inject £20 million (22 million euros; $33 million) into the UK’s leading tyre retailer to avoid a banking covenant breach, according to a report in the Financial Times. Kwik-Fit, which was last sold to PAI for around £800 million after seeing off fellow bidder Bridgestone, has reportedly seen a slight slowdown in sales growth in the recession and been hit by foreign exchange rates. Nevertheless the Edinburgh-based business is still expected to generate turnover of more than £900 million this year, that’s a 7 per cent growth in like-for-like sales. EBITDA is expected to drop 3 per cent to £96.3 million.