Ford To Sell Kwik-Fit For $500 million - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
» Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News
Register Home Forum Active Topics Photo Gallery Auto Loans Garage Mark Forums Read Auto Escrow

FordForums.com is the premier Ford Forum on the internet. Registered Users do not see the above ads.
Reply
 
LinkBack Thread Tools Display Modes
Old 08-12-2002, 06:29   #1 (permalink)
Mr. Embargo
 
Join Date: May 2001
Location: Embargoland
Posts: 3,745
Ford To Sell Kwik-Fit For $500 million

DEARBORN, Mich., August 12 Ford Motor Company [NYSE: F] announced today its intent to sign an agreement to sell Kwik-Fit, the company's European maintenance and light repair business, and that it has completed the sale of Collision Team of America (CTA), a U.S.-based chain of collision repair shops.

Upon sale of these two entities and with previously announced divestitures, the company is on track to meet its Revitalization Plan goal of $1 billion in cash realization this year from the sale of non-core operations.

CVC Capital Partners, a leading European private equity group, intends to sign an agreement to purchase Kwik-Fit for 330 million (about $500 million) in cash and a note that will be paid as CVC obtains outside financing.

The proposed transaction will be completed using a new company formed for the purpose, and financed by funds under the management of CVC. Ford will retain a 19 percent equity interest in the new company in order to benefit from the business's future growth. The sale is expected to be completed in the fourth quarter of 2002 and is subject to regulatory approvals. Ford will record a one-time, after-tax charge of approximately $500 million in the third quarter of 2002 related to the sale of Kwik-Fit.

Daniel Hall, a private businessman, has agreed to purchase 100 percent of the stock and assets of CTA and will operate the business along with his spouse, Rhonda Hall. The sale of CTA was completed on July 31, 2002.

"We are pleased to have found such suitable owners for both Kwik-Fit and Collision Team of America," said Martin Inglis, Ford group vice president, business strategy. "Although these are good businesses, they don't align with our back-to-basics strategy. These sales further signal the progress that Ford is making on key parts of our Revitalization Plan."

In addition, Ford has decided not to pursue the sale of Hertz Equipment Rental Corporation (HERC) at this time.

"U.S. capital spending is not recovering as quickly as anticipated, thereby delaying the recovery we expected in the equipment rental industry, " said Inglis. "As a result of these sector-specific factors, we have chosen not to pursue the sale of HERC until valuations become more favorable."

Kwik-Fit, Europe's largest maintenance and light repair operation, was purchased by Ford in 1999 and has 2,500 service centers and more than 11,000 employees. CTA operates 32 collision shops in four states (conducting business under various names) and has about 850 employees. Ford purchased a minority stake in CTA in 1998 and acquired the remaining shares in 2001. HERC is one of the world's largest rental suppliers of construction and industrial equipment including earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, pumps, compaction equipment and construction related trucks.
__________________
*Retired.
RPO83 is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 08-13-2002, 05:50   #2 (permalink)
Mr. Embargo
 
Join Date: May 2001
Location: Embargoland
Posts: 3,745
Ford sells Kwik-Fit for huge loss

Ford has sold the car maintenance and repair business Kwik-Fit to private equity group CVC Capital Partners for 330m.
The move is part of Ford's current policy of selling off its non-core operations in order to raise cash.

But the sale represents a big loss for the car maker, which bought Kwik-Fit for 1bn in 1999.

Kwik-Fit is Europe's largest car repair chain, with 2,500 service centres and more than 11,000 employees.

'Positive outcome'

Ford made a loss of $5bn in the last financial year, and has embarked on a restructuring plan which is seeing it cut thousands of jobs and concentrate on its basic car-making business.

Ford said the purchase of Kwik-Fit would be completed using a new company, which is financed by CVC managed funds.

Ford will retain a 19% stake in the new company so it can benefit from any future growth in the business.

"The sale of Kwik-Fit is a positive outcome for Ford and CVC," a Ford spokesman said.

"As we have said since the beginning of the year, we want to divest non-core assets and this gets us very close towards our goal for the year."

US deals

Ford also announced that it has sold Collision Team of America (CTA), a chain of US accident repair centres.

But it added that it had decided not to go ahead with the sale of Hertz Equipment Rental Corporation (HERC).

"US capital spending is not recovering as quickly as anticipated, thereby delaying the recovery we expected in the equipment rental industry," said Ford group vice president of business strategy, Martin Inglis.
__________________
*Retired.
RPO83 is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ford family celebrates 100 years of cars Stacy94PGT Ford Worldwide News 0 06-10-2003 05:46
FORD TOUGH: The pressure's on for Bill Ford Jr. to finish first Stacy94PGT Ford Worldwide News 0 06-10-2003 04:52
'Henry had the dream' Stacy94PGT Ford Worldwide News 0 03-28-2003 05:58
A CENTURY OF VISION: Fords built city, changed the world Stacy94PGT Ford Worldwide News 0 03-12-2003 07:17
Ford Product-Led Transformation: 2003 RPO83 Trans | Driveline 0 07-22-2002 06:48

Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 21:00.



Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.