UK middle-market private equity firm Palatine has exited Direct Tyre Management in a secondary buy-out by Caledonia Private Capital.
Founded in 2004 and headquartered in Blackpool, DTM works with fleet operators to monitor and maintain their vehicles’ tyres. In the last two years, its turnover has increased from £30m to £60m.
Palatine originally made a majority investment in DTM in 2020 through its acquisition of NRG Group. The firm separated NRG into two standalone businesses – DTM and NRG Riverside, a hire, contract, fleet management and services provider, which Palatine sold to Astatine Investment Partners in April.
Tom Wildig, Senior Investment Director at Palatine, commented: “Under Leigh’s leadership and with the support of Executive Chairman Steve Dolton, DTM has grown to become the leading independent tyre management business in the UK, with excellent relationships with its staff, customers and suppliers.
“DTM is well placed to continue on its impressive trajectory. We’ve worked closely with the team to ensure the business is at the vanguard of fleet management technology and has thoroughly embraced the value of placing ESG front and centre in its growth strategy.”
Tom Leader, Head of Caledonia Private Capital, added: “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.”
Palatine was advised by Clearwater, Gateley, CIL and PwC, while Caledonia was advised by Travers Smith, OC&C, Deloitte and PwC.
Palatine was founded in 2005 by partners Gary Tipper, Ed Fazakerley and Tony Dickin, focusing on the business services, financial services, health, education and technology sectors. The firm, headquartered in Manchester with offices in London and Birmingham, has so far raised four buyout funds. Palatine is currently raising a buyout fund investing £10m to £30m and an impact fund investing £5m to £20m.
