Chiltern Capital to fuel Kerrs Tyres’ growth

An automotive services company is set for further expansion following a new private investment backed by specialist acquisition financing.

Private investment firm Chiltern Capital has invested in Kerrs Tyres Group, one of Ireland’s largest tyre and automotive services operators, with funding arranged by FRP Corporate Finance. 

The transaction marks London-based Chiltern Capital’s third investment in the automotive sector, having previously invested in Steer Automotive and Rapid Repair Network, and strengthens its growing portfolio across the UK and Ireland.

Kerrs Tyres Group operates 27 autocentres across Northern Ireland and the Republic of Ireland, providing round-the-clock tyre services for commercial fleets and private vehicles, alongside routine maintenance. 

Bosses say the investment will back the existing management team as it targets continued growth through a mix of organic expansion and complementary acquisitions.

As part of the strategy, Andy Randall, former chief executive of Halfords Autocentres, has been appointed chair of the board.

Ben Robinson, investment director at Chiltern Capital, said: “It’s clear to us that Kerrs has a history of delivering exceptional service, driven by a talented team, and we knew we wanted to be part of their journey. 

“We are excited to work closely with Norman and Andy as we support them on the growth journey, leveraging our track record of successfully investing in businesses operating in the automotive aftermarket.

“I’m grateful to Tom and the team at FRP Corporate Finance in helping us to get this deal over the line. Their detailed support from day one helped us to secure the right funding package to support our efforts to build on the strong reputation Kerrs has built for itself.”

FRP Corporate Finance’s debt advisory team, led by debt advisory partner Tom Cox and associate director Rahool Patel, secured funding from DunPort Capital Management, structuring a flexible package to support a buy-and-build approach.

Tom added: “The automotive market remains highly fragmented, and Chiltern were able to heavily lean on their experience in the sector. 

“Chiltern rapidly identified the tyres and servicing sector as an attractive sub-segment for market consolidation through a buy-and-build strategy, with a view to expanding the platform and creating operational efficiencies as part of a wider group that will support the long-term growth strategy.

“Chiltern’s experience in the sector, combined with its clear plan for the future of the business, makes it an exciting partner for Kerrs Tyres and it was a pleasure to help them complete this transaction.”

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