Micheldever
Transaction Background
Graphite Capital led the £85 million management buy-in/buy-out of Micheldever Tyre Services, a wholesaler of car, 4x4 and motorcycle tyres, in early 2006. The company is the largest distributor of tyres to independent retailers in the UK, offering all major tyre brands. In addition, it operates a chain of retail sites, primarily in the South of England.
Deal Attractions
The company controlled a significant share of the UK tyre wholesale market. Its management team and the buy-in team were highly experienced and had developed a compelling strategy for further wholesale and retail expansion. In addition, improved product mix and stock management offered strong additional profit potential.
Achievements
- Graphite appointed a new Chairman, CEO and Finance Director at completion of the deal and has since strengthened the management team further with the appointment of a Retail Director and a Logistics Director
- wholesale turnover has grown strongly as the company has continued to expand its customer base
- 33 retail sites have been acquired since the buy-in/buy-out, taking the total to 49
- a third party distribution service has been introduced
- group sales have risen to over £275 million in 2010 and operating profit has also increased substantially
