PAI completes sale of KwikFit to Itochu Corp

PAI Partners has completed its sale of Kwik Fit, the UK’s biggest tyre retailer, to Itochu Corporation, confirming the news reported by City A.M. in early March (see right) that the Japanese conglomerate had won the auction for the auto repair business.

Itochu paid £637m, including acquiring net debt of £457m, for part of the business that PAI bought in 2005 for £800m. But PAI has sold off parts of the business since then, making it hard to determine the private equity investor’s loss or gain on the asset.

Colm O’Sullivan, a partner at PAI, said: “Kwik Fit moves into new ownership in a much more robust position than when PAI bought the business.”

Baker & McKenzie and Nomura advised Itochu, while Morgan Stanley and Credit Suisse advised PAI on the auction.