Caledonia views DTM acquisition as ‘exciting addition’ to portfolio

Caledonia Investments PLC on Monday said it had bought a majority stake in Direct Tyre Management for £55 million.

Founded in 20024, Direct Tyre Management is a Blackpool, England-based independent provider of outsourced tyre management services to fleet operators.

The business has consistently delivered year-on-year growth with a revenue compound annual growth of around 16% over the last 15 years.

DTM has over 100 employees and serves around 250 fleet customers with around 285,000 vehicles and around 1,300,000 tyres under management.

Management have reinvested alongside Caledonia to acquire 100% of the business from investors including Palatine Private Equity, Caledonia said in a statement.

Caledonia, the London-based investment trust, said the acquisition reflects its strategy of investing in ‘quality, robust and well-established companies, with proven management teams seeking a long-term supportive shareholder.’

Caledonia’s Head of Private Capital Tom Leader said: ‘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.’

Shares in Caledonia Investments rose 1.2% to 3,725.00 pence in London on Monday morning.

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