EUROPEAN private equity firm PAI Partners is expected to make £192m from its sale of Kwik-Fit to Japanese conglomerate ITOCHU, a deal first revealed by City A.M. on Wednesday (see right).
PAI, which was being advised by Morgan Stanley and Credit Suisse, signed off on a £637m sale of Britain’s biggest tyre retailer to ITOCHU on Tuesday, including £457m of debt. ITOCHU was being advised by Nomura.
PAI originally bought Kwik-Fit from rival private equity firm CVC Capital Partners in 2005, when it paid £800m. But the sell-off of separate entities within the retailer since then make the venture a profitable one.
Shortly after buying the auto shop chain, PAI sold off its stores and re-leased them in order to refinance its original purchase. It then sold off Kwik-Fit’s insurance business last year for £215m, before selling the last part of the retailer this week.
PAI declined to comment.