MTS now operates approximately 100 Protyre retail sites
Japan’s Sumitomo Rubber Industries, Ltd. has announced its intended acquisition of Micheldever Group Ltd. from Graphite Capital Management LLP. for an enterprise value of £215 million. The tyre maker states its decision to purchase Micheldever is closely linked to the aim of strengthening the market position of its Falken tyre brand in the UK.
Micheldever Group employed 1,574 people as of the end of last year and achieved sales of approximately £320 million in the fiscal year ending 31 March 2016. It is the holding company controlling tyre wholesaler and retailer Micheldever Tyre Services Ltd. (MTS), a business that annually sells some 6 million tyres in the UK, around 20 per cent of the market total.
MTS has established a wholesale distribution network centred around 15 warehouses throughout the UK, and from these sites it supplies over 6,000 retailers nationwide via its own fleet of 225 vehicles. MTS also operates the UK’s fastest growing tyre retail chain; the number of outlets in the Protyre network increased from 63 in 2014/15 to 88 in 2015/16 and is now said to be at around the 100 mark.
The purchase of Micheldever was made easier, notes Sumitomo Rubber Industries, through the dissolution of an alliance agreement with Goodyear in October 2015. The company says the end of this agreement gave it a “greater degree of freedom to expand its business in Europe.” Sumitomo foresees that the acquisition will help accelerate its “Business Expansion in Europe and North America” action plan, a part of its long-term Vision 2020 strategy.
Graphite Capital led the £85 million management buyout of Micheldever that took place in February 2006.