Caledonia Investments has acquired a majority stake in Direct Tyre Management (DTM), a UK independent provider of outsourced tire management services for fleet operators. The investment, valued at £55m, was made alongside the DTM management team, which reinvested to acquire 100% of the business from previous investors, including Palatine Private Equity.
Headquartered in Blackpool, DTM employs over 100 people and manages approximately 1.3 million tires across 285,000 vehicles for around 250 fleet customers. The company leverages a technology platform to enhance fleet efficiency, compliance and output, connecting the vehicles it manages to a national network of over 3,500 service provider locations.
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 CEO, added, “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.”
