Ford To Sell Kwik Fit And Lose $1.1Billion In 3 Years - Pretty Soon This Will Add Up To Real Money. As a Stockholder I Am Pissed Off Are You?
LONDON, July 21 Reuters repeated that the Financial Times reported that Ford Motor Co. is putting the final touches on an estimated 300 million pound ($473.9 million) deal to sell Kwik-Fit, its car servicing business, to private equity firm CVC Capital Partners, the Financial Times reported.
The U.S. motor group is thought to have caved in to accept deferred payments from CVC of a sizable amount of the total sale price, the newspaper said.
Ford had hoped to raise at least 800 million pounds from the disposal after paying 1 billion pounds for Kwik-Fit three years ago.
Ford is likely to retain a stake in Kwik-Fit to take advantage of any upturn, the FT reported.
Accounting irregularities were discovered at Kwik-Fit last month, which helped CVC obtain a lower price for the business and more preferential terms, the FT was told by some people familiar with the talks.
CVC is thought to be the only remaining bidder after private equity rivals Apax and Permira walked away from making an offer.
Uncertainty created by the European block exemption reform, covering car distribution and after-market servicing, is believed to have deterred trade bidders.
CVC declined to comment on Sunday. Ford said: "We are continuing to make progress on the sale of Kwik-Fit and we have something further to announce when the sale is completed."
The deal comes after Ford said it was well on track with its plan to raise $1 billion from asset sales this year and had raised around $400 million by the end of the second quarter.