Ford to sell Kwik-Fit to European capital investors for $500 million.

Tire Business, August, 2002

Ford Motor Co. will sell its Kwik-Fit European car maintenance and repair business to CVC Capital Partners for about $500 million-less than a third of what it paid for the chain three years ago.

Under the deal, announced Aug. 12, private equity group CVC will form a new company from Kwik-Fit, in which Ford will have a 19-percent stake. The U.S. car maker will post third-quarter charges of about $500 million from the sale, which is due to be completed by year-end, subject to approvals.

Ford bought Kwik-Fit from the business's founder Tom Farmer in April 1999 for $1.6 billion. At the time Ford said it planned to expand the Kwik-Fit concept-selling and installing tires, exhausts and brakes, and deliver quick turnaround at affordable prices-across Europe...

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