A Scottish car servicing business founded by Sir Tom Farmer has been sold to a private equity-backed buyer as part of plans to expand across the UK.
Farmer Autocare, which operates 21 sites across Scotland and employs nearly 200 people, has been acquired by Belfast-based Kerr’s Tyres Group, which is backed by private equity firm Chiltern Capital.
Sir Tom, who died in May last year aged 84, founded Farmer Autocare in 2003. He built Kwik-Fit from a standing start in his home city of Edinburgh in 1971 into one of the best-known companies in Scotland, selling that business to Ford in 1999 for £1 billion.
Farmer Autocare and Kerr’s Tyres Group portrayed their deal as “bringing together two family-run organisations with strong community roots and a shared long-standing commitment to looking after their customers and people”.
They said it was "about long-term investment and building a platform for growth in Scotland and the north of England - with Farmer Autocare at the centre of that expansion plan".
A spokesperson for the Farmer family said: “The Farmer Autocare business has been built and grown on the key principles that Sir Tom Farmer brought to the car maintenance and servicing sector over his 60 years in the business. Look after your customers by offering good value with excellent customer service and look after your people by giving them quality jobs and great opportunities.
“When Kerr’s Tyres Group approached us we quickly recognised a shared belief in how our businesses should operate and a natural fit between the two organisations. We also saw an opportunity to accelerate the expansion plans that were already in place for Farmer Autocare.”
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Following the deal, Farmer Autocare will continue to operate in Scotland under its existing management team. This is led by managing director Colin McNeill.
Kerr’s Tyres Group was founded in 2002 by Norman Kerr in Antrim and now has more than 27 retail sites, a large commercial tyre business and a tyre distribution group.
Chief executive Mr Kerr said: “Having worked for Sir Tom Farmer much earlier in my career, it is an absolute privilege to build on what he created and help the team thrive for decades to come.”
Kerr's Tyres Group noted its retail business "provides tyres, services, maintenance and repairs across Ireland".
It added that, over the next five years, it plans "to expand to 250 sites throughout the UK", backed by London-based Chiltern Capital.
Kerr's Tyres Group said: “This expansion will be achieved by acquiring industry-leading businesses, like Farmer Autocare, to create a national chain of centres."
Mr Kerr declared: “Farmer Autocare is an exceptional business built on genuine care for customers and colleagues - values that very much mirror our own.
“We aim to continue delivering what makes Farmer Autocare so successful and share those best practices across Kerr’s Tyres Group, whilst providing operational scale to both businesses.”
He added: “Our growth and investment plans will create new opportunities for colleagues, while ensuring the Farmer Autocare standards and ways of working are embedded as we expand. Together, we will help the business move forward without changing what makes it special."
Mr McNeill said: “This is an incredibly exciting day for us all in Farmer Autocare.
“The Kerr’s Tyres Group investment creates tremendous opportunities for our people. Their ambitious growth plans for our already successful business will mean we expand our centres even faster and offer our…service to even more Scottish customers.”
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