Kwik Fit has sold its UK Insurance business (KFFS) to Fortis UK Limited for £215 million in cash.
The transaction must still pass through the usual regulatory channels and is expected to be completed in the third quarter of 2010.
Proceeds from the sale will be used to repay debt which, together with funds injected into the business as part of the recently completed covenant reset exercise, will reduce net bank debt to £486m.
Kwik-Fit has continued to expand its businesses by investing in new products in order to diversify its offering to customers.
Specific initiatives implemented in 2010 include:
- Continued expansion of MOT capacity in the UK, bringing total capacity to 510 MOT centres (76% of the estate)
- Expansion of servicing in a further 19 UK centres, bringing total capacity to 596 Servicing centres (89% of the estate)
- Opening of five new centres in the UK as part of an ongoing core estate expansion programme, with a further eight centres due to open in the remainder of the year
- Continued expansion of the glass repair / replacement offering in continental Europe
- Further development of the Fleet offering in continental Europe through growth in market share
Ian Fraser, chief executive of Kwik-Fit said: “The sale of the UK Insurance business at an attractive price enables the Group to reduce debt significantly and to invest further in our core fast-fit business.
"As we expand the services and products we offer, Kwik-Fit is playing an increasingly important part in keeping our customers motoring safely and at an affordable price.”