Sir Tom poised to buy back Kwik-Fit

Published on Monday 14 January 2002 00:00

KWIK-FIT chairman Sir Tom Farmer is understood to be very close to buying back the car repair chain he sold to United States car giant Ford for about £1 billion in 1999.

Following last year’s installation of William Clay Ford, the great grandson of the company’s founder, Henry Ford, as head of the company, the US company has launched a sweeping operational review.

It is looking to trim its operations back to core car production and has appointed global bank Goldman Sachs to "explore strategic options".

These options reportedly include the possible sale of Kwik-Fit.

Sir Tom has refused to comment on any possible buy back, but he has long held plans to expand the car and tyre chain, particularly into countries like China, as part of a strategy to double the number of Kwik-Fit outlets to 5000 by 2005.

Sir Tom, 61, has also strongly refuted the prospect of retirement, suggesting that he would be keen to regain day-to-day control of the firm he originally founded in Leith in 1971 should Ford put the "For Sale" sign on it.

It is believed the price tag on Kwik-Fit, which employs about 11,500 people, would be about 650m - a figure which roughly matches Ford’s pre-tax losses in Britain last year.

Sources in Edinburgh have said that the fact that Sir Tom has refused to rule out a possible buy-back "make it seem likely that he is working on raising the finance".

One source said that it was possible Sir Tom wanted to "tie up the financing" of any deal before revealing his plans.

Sir Tom has described Kwik-Fit as "the most successful car repair business in the world" and that it was a position "we must do our best to retain".

Sir Tom has sent a letter to all the firm’s employees which said: "Where the future lies, I don’t yet know, but it won’t affect the Kwik-Fit staff.

One leading Edinburgh stockbroker said the return of Kwik-Fit to Scottish ownership would be "a major boost to the Scottish economy".

No-one at Kwik-Fit was available for immediate comment today.