Tyre retail giant on the market for £200m

Tyre giant Micheldever Tyre Services (MTS) has put itself on the market for £200m.

The Hampshire-based company comprises the tyre retail chain and a large wholesale distribution business. Its parent company Graphite Capital bought the business in 2006 for £85m from the founder Tony Todd in a management buyout deal.

Mr Todd first ran the business from a shed in 1972, and spent the next 34 years building it up. When Graphite took over it had a workforce of 550 and revenues of £148m. The business now has a turnover of over £275m and 900 staff.

Chief executive Paul Fox, who led the management buyout in 2006, said: "Performance is very strong for 2010, as the last few years have been".

The business is the biggest independent wholesaler and distributor of tyres, and its base in Micheldever is perhaps the busiest tyre retail outlet in Europe.

MTS has done well from the recession, as car owners have been more likely to service their vehicles then purchase new models.

Private equity firms and trade rivals are considered likely to become potential buyers. It is expected that a deal will take place in the summer.

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