Friday, 4th March 2011
In Business In Japan,
Kwik-Fit sold to Japanese company
The largest tyre retailer in Britain has been sold to Japan-based Itochu Corporation for £637 million.
Market experts believe that Itochu acquired the business from French private equity firm PAI Partners, successfully outbid rival interest from Japanese company Marubeni and a number of other private equity firms.
Kwik-Fit currently has 676 services centres and a workforce of over 4,600 staff in the UK plus an additional 1,800 outlets in Europe.
PAI Partners originally purchased Kwik-Fit in 2005 for £800 million and carried out a sale-and-leaseback of the company's property in 2007.
Itochu already own Stapleton Tyre Services and is expected that the Japanese company will merge this with its new Kwik-Fit operations.
Last year, Kwik-Fit reported earnings before interest, taxation, depreciation and amortisation of £75 million.
Founded in 1858, Itochu has operations in 74 countries within a number of sectors including aerospace, energy and real estate.
Written by Susan Ballion.