Caledonia Private Capital has secured a majority stake in Lancashire-based Direct Tyre Management (DTM) from Palatine.
The deal follows a record period of growth and investment for DTM, which works with major fleet operators to monitor and maintain their vehicles’ tyres. In the last two years turnover has increased from £30m to £60m.
Founded in 2004 and headquartered in Blackpool, DTM is said to be the largest independent tyre management provider in the UK. It uses smart technology to predict and prevent potential roadside failures. This supports major fleet customers to increase vehicle safety and minimise costs, while reducing waste and cutting their carbon footprint.
Palatine originally secured a majority investment in DTM in October 2020, through the acquisition of NRG Group. It separated the group into two standalone businesses – DTM and specialist fleet solutions provider NRG Riverside, which it sold to Astatine Investment Partners in April this year.
Leigh Goodland, chief executive of DTM, said: “We have grown rapidly from a £30m turnover to a £60m turnover over the last two years by acquiring new business organically and through our ability to be both agile and independent providing customers with insight and recommendations leading to the most sustainable tyre choice.”
He added: “Palatine has been a highly supportive investment partner and its leadership on ESG performance has been key to helping us develop a proposition that enables our customers to make more sustainable choices around how they operate their fleets.”
Tom Leader, head of Caledonia Private Capital, commented: “We are proud to have become the new owners of DTM and to partner with Leigh Goodland and his team in the next stage of the company’s development. DTM’s consistent track record of revenue growth and cash generation, together with its market-leading position, make the business an exciting addition to our Private Capital investment portfolio. We believe there are multiple avenues through which to build further on the business’s excellent record and to expand its range of services in the UK and other jurisdictions.”
Palatine’s advisors on the deal included: Clearwater (corporate finance) (Michael Loudon, James Malcharek, Alex Fowler, Ffion Jones), Gateley (legal) (Rebecca Grisewood, Kate Richards, Adam Noble), CIL (commercial due diligence) (Jon Whiteman, Tim Perera) and PwC (financial due diligence) (Syedul Hussain, David Tomlinson).
Caledonia’s investment in DTM was led by Theo Tizard, James Lander, Dan Lock and Joe Carter Hepplewhite.
Caledonia’s advisors included: Travers Smith (Adam Orr, Alex Dixon and Rachel MacAthur), OC&C (Nic Farhi, Mark Jannaway and Haleh Taghinejadi), Deloitte (Tim Haden and Sam Ward) and PwC (James Tubby and Josh Whittingham).
