New and significant additional finance capability was provided by a club of banks consisting of GE Capital, HSBC, Royal Bank of Scotland, and Santander UK plc. The deal will enable Micheldever Tyre's management to continue to supplement the firm's strong organic growth with complementary acquisitions.
As a demonstration of intent, Micheldever Tyres has recently closed two acquisitions - comprising the Tyreland and Treble B brands - completing the firm's retail footprint along the South Coast and in South Wales respectively.
Established in 1972 as a single site in Micheldever, where the head office remains, the business has grown to be the UK's largest tyre distributor and, under the Protyre brand, the fourth largest tyre service centre operator by volume. Now employing 1,100 people, Micheldever Tyres sold six million tyres in the 12 months to March 2011, generating £300m in revenue. The company was recently ranked 92nd in The Sunday Times Fast Track 250.
Paul Fox, chief executive of Micheldever Tyres, and Richard Sawney, finance director, completed a management buyout in 2006 supported by Graphite Capital, which remains a majority shareholder in the business. With the addition of Jon Cowles, acquisition director, the company has further grown its retail network, more than doubling the number of sites since the original transaction.
The most recent transaction comprised the refinancing of existing facilities, an increase in lines to provide capacity for future acquisitions, and working capital funding. Debt financing was provided by GE Capital, HSBC, RBS and Santander. Thomas Eggar advised the company with DLA Piper advising the lenders.
Paul Fox, chief executive of Micheldever Tyres, said: "We are very grateful to RBS for their continued support, and to our three new banks, GE Capital, HSBC and Santander, who have shown appetite to provide funding in these continuingly uncertain economic times. The acquisition of Tyreland and Treble B continues our progress as a leading tyre seller in the UK, and the increased funding package provides capacity for on-going growth in the coming years with what is a strong acquisition pipeline."