Easy Autocentres takes over HiQ repair centres
Easy Autocentres has taken over 27 motoring repair centres from HiQ, the trading division of Birmingham-based Goodyear Dunlop, to become one of the largest independent fast fit operators in the Midlands with a turnover of about £10 million.
The units, including the flagship HiQ store in Nottingham, are based throughout the Midlands with one of the Birmingham branches being based near Goodyear Dunlop’s Tyre Fort head office in Erdington. They supply and fit tyres, exhausts and batteries and undertake car servicing.
The deal was financed by Steve Taylor at the Co-operative Bank’s Birmingham Corporate Banking Centre with David Totney at invoice factoring specialists Liquidity providing working capital facilities.
Easy Autocentres was advised by David Neat at Springboard Corporate Finance with legal advice by Gareth O’Hara from Wilkes Partnership.
Easy Autocentres managing director and majority shareholder Chris Kisby was previously managing director of Goodyear Dunlop’s HiQ national operation. He said: “I recognised that the opportunity to acquire these units would provide a strong platforms in the Midlands. We will seek to build, both organically and through acquisition, to be a significant player in the sector.”
Steve Taylor said; “Although conditions are turbulent in the industry, the outlook for the fast-fit sector remains good. Easy Autocentres came to us with a robust business plan and we are confident that they will go from strength to strength.
“This deal shows that even in today’s uncertain economic climate, we are still very much open for business and lending to companies with impressive business strategies.”
David Neate, director at Springboard Corporate Finance, said: “This transaction represents the culmination of seven months’ work, during which the funding market has fundamentally changed.
“While the credit crunch has made funding difficult, the successful completion of this transaction demonstrates that where the business can demonstrate resilient trading performance, it is still possible to raise an appropriate package. The funding package will enable Easy Autocentres to grow from a strong base to become a significant player in the market.”
Gareth O’Hara, corporate partner at Wilkes Partnership, said: “The legal aspects were not entirely straightforward and there were a number of issues which had to be dealt with, both due to the number of individual properties involved and the fact that Easy Autocentres will have an ongoing relationship with Goodyear.
“However, Chris knew the business he was buying inside out and this enabled us to find a practical and efficient solution.”
