Caledonia Investments swoops in for tyre company DTM with £55m majority stake

Investment trust Caledonia has bought a majority stake in Direct Tyre Management (DTM) for £55m, meaning it now owns the entire firm.

DTM, which provides outsourced tyre management services to fleet operators, has reinvested alongside Caledonia to acquire 100 per cent of the business from investors including Palatine Private Equity.

Blackpool-based DTM has delivered year-on-year growth with annual revenue growth of 16 per cent over the last 15 years, Caledonia said.

DTM manages a fleet of around 285,000 vehicles and connects the vehicles it manages to a national network of over 3,500 service provider locations.

Caledonia, a FTSE-250 firm with assets of around £3bn, has described itself as a “long-term supportive shareholder”.

It has said it focuses on “quality, robust and well-established companies”.

Tom Leader, Caledonia’s Head of Private Capital, said: “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’ excellent record and to expand its range of services in the UK and other jurisdictions.”

Leigh Goodland, DTM’s chief executive, said: “I am delighted to welcome Caledonia as DTM’s new equity partner. 

With Caledonia’s financial support, flexibility and long-term investment horizon, I am confident that we can build on the Business’ reputation for outstanding customer service and track record of innovation to bring new technology to our customers and take advantage of the significant growth potential in our chosen markets.”