Caledonia Investmnts - Caledonia acquires Direct Tyre Management
19/08/2024 07:00
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RNS Number : 8383A Caledonia Investments PLC 19 August 2024
Caledonia Investments acquires Direct Tyre Management
Caledonia Investments plc ("Caledonia") is pleased to announce that it has
invested £55m to acquire a majority stake in Direct Tyre Management Limited
("DTM" or the "Business"), the UK's leading independent provider of outsourced
tyre management services to fleet operators. The management team has
reinvested alongside Caledonia to acquire 100% of the Business from investors
including Palatine Private Equity.
The acquisition exemplifies Caledonia's strategy of investing in quality,
robust and well-established companies, with proven management teams seeking a
long-term supportive shareholder.
Founded in 2004, DTM provides specialist, independent outsourced tyre
management services. The Business has consistently delivered year-on-year
growth with a revenue CAGR of c.16% over the last 15 years.
Headquartered in Blackpool, DTM has over 100 employees and serves c.250 fleet
customers with c.285,000 vehicles and c.1,300,000 tyres under management.
Enabled by a proprietary technology platform, which allows customers to
maximise their fleet efficiency, compliance and output, DTM connects the
vehicles it manages to a national network of over 3,500 service provider
locations.
Commenting on the acquisition, Tom Leader, Caledonia's Head of Private
Capital, said:
"We are proud to have become the new owners of DTM and to partner with Leigh
Goodland and his team in the next stage of the company's development. DTM's
consistent track record of revenue growth and cash generation, together with
its market leading position, make the Business an exciting addition to our
Private Capital investment portfolio. We believe there are multiple avenues
through which to build further on the Business' excellent record and to expand
its range of services in the UK and other jurisdictions."
Leigh Goodland, DTM's CEO, commented:
"I am delighted to welcome Caledonia as DTM's new equity partner. With
Caledonia's financial support, flexibility and long-term investment horizon, I
am confident that we can build on the Business' reputation for outstanding
customer service and track record of innovation to bring new technology to our
customers and take advantage of the significant growth potential in our chosen
markets."
19 August 2024
For further information contact:
Company contacts
Caledonia Investments plc +44 20 7802 8080
Mat Masters
Chief Executive Officer
Rob Memmott
Chief Financial Officer
Tom Leader
Head of Private Capital
Media contacts
Teneo +44 20 7353 4200
Tom Murray
Robert Yates
caledonia@teneo.com (mailto:caledonia@teneo.com)
END
Notes for editors:
Caledonia Investments plc
Caledonia is a FTSE 250 self-managed investment trust company with a long
track record of delivering consistent returns and progressive annual dividend
payments to shareholders.
Our aim is to generate long-term compounding real returns that outperform
inflation by 3%-6% over the medium to long term, and the FTSE All-Share index
over 10 years.
We are a long-term investor and hold investments in both listed and private
markets across three pools: Public Companies, Private Capital and Funds. Each
has a strategic allocation of capital, investment strategy and target return.
The result is a well-balanced diversified portfolio of investments with a
global reach.
Within its Private Capital pool Caledonia typically seeks to invest between
£50m and £150m in private companies, either on a majority or minority basis,
where Caledonia provides enduring capital and support to investee company
management teams over the longer term. The Caledonia Private Capital
portfolio includes AIR-serv Europe (a leading designer and manufacturer of
air, vacuum and jet wash machines provided as turn-key solutions to fuel
forecourt operators across Western Europe), Stonehage Fleming (a multi-family
office providing fiduciary and investment management services to UHNW clients
and families), Cobehold (the holding company of Cobepa, a European unquoted
investment house), Cooke Optics (a UK manufacturer of premium cinematography
lenses), and Liberation Group (a pub, restaurant and drinks business with a
pub estate stretching from Southwest London to Bristol and the Channel
Islands).
For additional information on Caledonia Private Capital, please visit
www.caledoniaprivatecapital.com (http://www.caledoniaprivatecapital.com) and
for Caledonia please visit www.caledonia.com (http://www.caledonia.com) .
Transaction
Caledonia's investment in DTM was led by Theo Tizard, James Lander, Dan Lock
and Joe Carter Hepplewhite.
Travers Smith (Adam Orr, Alex Dixon and Rachel MacAthur) provided legal
advice, OC&C (Nic Farhi, Mark Jannaway and Haleh Taghinejadi) provided
commercial advice, Deloitte (Tim Haden and Sam Ward) provided tax advice and
PwC (James Tubby and Josh Whittingham) provided financial due diligence.
Clearwater Corporate Finance (Michael Loudon and James Malcharek) provided
corporate finance advice to the vendors and legal advice was provided by
Gateley (Rebecca Grisewood and Kate Richards). Commercial due diligence was
provided by CIL (Jon Whiteman) and financial and tax due diligence was
provided by PwC (Sid Hussain and Emma Sutherland).
DTM operated as an independent division of NRG Fleet Services group ("NRG").
In April 2024, DTM was legally separated from NRG when Astatine Investment
Partners acquired the remainder of NRG's business and operations.
Neither the contents of Caledonia's nor DTM's websites, nor the contents of
any website accessible from hyperlinks on these websites (or any other
website) is incorporated into, or forms part of, this announcement.
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