Universal buys Jetyres
On 30 June Universal Tyres acquired Jetyres. The deal, which was six months in the making, sees Universal add Jetyres’ four retail branches to the company’s existing portfolio of 12 tyre retail locations. With a combined total of 16 points of sale, Universal looks likely re-enter the UK top 20 in 2017 as a result of the transaction. No details of the levels of investment connected to Universal’s purchase of Jetyres have been released.
Speaking to Tyres & Accessories, Universal Tyres managing director Andrew Wright, explained some of the strategy behind the deal. Universal already had a three to five year goal of increasing turnover to around £35 million pounds prior to the Jetyres acquisition. With the addition of Jetyres to the portfolio, Universal’s projected annual sales have already increased to north of £30 million and now the company is aiming to get to £37 million in the next couple of years. Asked whether this was by organic growth, investment in greenfield sites or by acquisition, Wright was clear that the company is looking to continue on its current growth path with further acquisitions. These are likely to remain in the M25/home counties region, with Wright saying: “We don’t want to stray too far from the South East”.
The latest acquisition follows a series of redevelopment investments at Universal. This has seen the company virtually knock down and re-build three of its branches as well as moving some of its smaller locations into better premises. Just as with the acquisitions, Universal looks set to continue improving its locations as the company continues to grow.