CVC Capital, the owner of UK auto repairs chain Kwik Fit, is considering selling its asset after being advised by an investment bank that the business could fetch up to GBP1 billion.
The advice comes as CVC has been interviewing banking organizations to become Kwik Fit’s financial advisers as it moves the garage services company towards an initial public offering.
According to the FT, five banks, Citigroup, Deutsche Bank, Goldman Sachs, Merrill Lynch and Morgan Stanley, are vying for the business. However the strong value estimate could cause CVC to reconsider its plans and opt for a direct sale in the near future.
CVC, an equity investment organization, became the third owner of Kwik Fit when it paid a knock-down GBP330 million to Ford in August 2002. Automotive giant Ford sold the business at a loss after paying GBP1.2 million in 1999 to Sir Tom Farmer, the businessman who originally set up the company over 30 years ago.
Despite the apparent uncertainly over whether CVC will float or sell the business, a person close to the situation told the FT that a sale is likely by the end of the summer even if the company was previously put up for public offer.
Potential interested buyers could include tire titans such as Bridgestone or Michelin.