Motor repair group Kwik-Fit is thought to be mulling a sale of its insurance business to help reduce its debt pile. Advisers at Credit Suisse have been brought in to review strategic options for the business.
The review, requested by its owner French private equity firm PAI, comes after unsolicited bids had been received for the finance business.
Kwik-Fit Financial Services, which includes Kwik-Fit Insurance, Express Insurance and Green Insurance Company, could be sold for at least £200m.
PAI purchased Kwik-Fit from another private equity firm CVC for £800m in 2005.
The financial services arm was set up by Sir Tom Farmer in 1995, employs over 1,000 people and handles about 10 million calls per year.
Kwik-Fit Financial Services has over one million policies in home, motor, pet and travel insurance. The company won the Investment in People award at the UK Broker Awards in 2009, and was ranked 17th place in the Sunday Times '100 best companies to work for' list.
The sale will help Kwik-Fit to reduce its sizeable debts, which, according to its last recorded accounts, amounted to £822m.
Kwik-Fit was originally founded in 1971 by Farmer who sold it for £1bn in 1999 to car manufacturer group Ford, which later sold it on to CVC.
