Micheldever Tyre Services

In February 2006 Graphite Capital led the £85 million management buy-in/buy-out of Micheldever Tyre Services (MTS), the UK’s leading distributor of car, 4x4 and motorcycle tyres.

MTS is the largest distributor of tyres to independent retailers in the UK, offering all major premium tyre brands and a number of exclusive mid-range and budget brands. In addition, the company operates one of the UK’s largest chains of tyre service centres.  As a result of the unrivalled depth of its product range and its strong focus on customer service, MTS has been highly successful in driving further consolidation of the UK tyre industry.

Following our investment, we significantly strengthened the company’s management team and supported considerable investment in systems and processes.  This allowed MTS to consistently gain share in a competitive and cyclical market, further penetrating existing wholesale accounts and growing its presence in the highly fragmented tyre retailing sector.

Key Business Achievements

Achieved nationwide distribution coverage to serve 3,500 customers from 14 warehouses

Acquired 83 retail sites in 36 separate transactions

Became the third largest tyre retailer in the UK

Doubled turnover to over £300 million and grew operating profit from £9 million to over £23 million

 

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bolt-on acquisitions since buy-out

Business Exit

In 2017 Graphite sold its investment in MTS to Sumitomo Rubber Industries, a Japanese tyre manufacturer and distributor, in a transaction valuing the company at £215 million. The sale generated a multiple of 3.7 times the cost of Graphite’s investment.