Micheldever Tyres announces acquisitions and increased funding package

We’re now NatWest Group

Come and visit us for all our latest news, insights and everything NatWest Group.


Micheldever Tyres announces acquisitions and increased funding package

Hampshire-based Micheldever Tyres, the UK's largest tyre distributor, has announced an increase of its existing financing facilities and the completion of two acquisitions as part of the company's on-going expansion.

Supporting corporates

15 November 2011

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."

Latest news

RBS to help 2.5 million people each year to be more financially capable

RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.

RBS to increase lending to sustainable energy sector following £1.1bn securitisation of loans to UK sustainable energy market

RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.

RBS launches £1 billion Female Entrepreneurship Funding and announces targets to help create at least 50k new businesses by 2023

RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.

We’re now NatWest Group

Come and visit us for all our latest news, insights and everything NatWest Group.

Set Tab for lightbox