Debt-laden parent had approaches to sell insurance firms
Kwik-Fit, the car repair firm founded by Sir Tom Farmer, the Scottish entrepreneur, is preparing to sell its insurance business for more than £200m, The Sunday Times reports.
Credit Suisse is to carry out a review of the 1995-launched Kwik-Fit Financial Services, which includes the Green Insurance Company and Express Insurance. It employs more than 1,000 people, handles 10 million calls a year, and has 1 million motor, home, pet and travel insurance policies.
The parent firm has debts of £822m and PAI, the French private equity firm that owns the business, had to pay in £20m in December to prevent it breaching banking covenants. PAI bought the business from CVC, a rival private equity house, for £800m in 2005.
Approaches
Ian Fraser, chief executive, said: “Having received a number of approaches from interested parties, the time is now right to examine a range of strategic options for Kwik-Fit Financial Services to ensure the business can maximise its long-term potential.”
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