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FRP Corporate Finance has arranged acquisition financing for private investment firm Chiltern Capital to support its investment in Kerrs Tyres Group, one of Ireland’s largest tyre and automotive services businesses.
Chiltern Capital, which is based in London and invests across the UK and Irish mid-market, has backed Kerrs Tyres as part of a strategy to expand the business through organic growth and acquisitions.
Founded in 2002, Kerrs Tyres operates 27 autocentres across Northern Ireland and the Republic of Ireland. The business provides tyre services for commercial fleets and private vehicles, alongside routine maintenance and repair work.
The investment will support the existing management team and is underpinned by the appointment of Andy Randall, former chief executive of Halfords Autocentres, as chair of the board.
FRP Corporate Finance’s debt advisory team, led by partner Tom Cox and associate director Rahool Patel, was appointed by Chiltern Capital to raise acquisition financing for the transaction.
The team approached a range of lenders before selecting DunPort Capital Management as the funding partner.
The agreed funding package includes committed and incremental acquisition facilities, providing flexibility to support a buy-and-build strategy across the UK and Ireland.
The deal represents Chiltern Capital’s third investment in the automotive sector, following previous investments in Steer Automotive and Rapid Repair Network.
Cox said: “The automotive market remains highly fragmented, and Chiltern were able to heavily lean on their experience in the sector. Chiltern rapidly identified the tyres and servicing sector as an attractive sub-segment for market consolidation through a buy-and-build strategy, with a view to expanding the platform and creating operational efficiencies as part of a wider group that will support the long-term growth strategy.
“Chiltern’s experience in the sector, combined with its clear plan for the future of the business, makes it an exciting partner for Kerrs Tyres and it was a pleasure to help them complete this transaction.”
