Firm feels 'the time is right' to explore its options as debts reach £822m
Kwik-Fit will struggle to sell its insurance arm for £200m, market sources told Insurance Times.
The car repair firm is looking to sell its broking business for that kind of figure as it struggles with debts of around £822m.
One source said that any deal would be complicated by the Kwik-Fit brand, and how the brand could be continued under new ownership.
The source said that these complications made a trade sale unlikely. Kwik-Fit is owned by French private equity PAI Partners.
Chief executive Ian Fraser commented: “Having received a number of approaches from interested parties, the time is now right to examine a range of strategic options for Kwik-Fit Financial Services to ensure the business can maximise its long-term potential.”
Credit Suisse is to carry out a review of Kwik-Fit Financial Services, which as well as the broking arm includes Green Insurance Company and Express Insurance.
In 2008, Kwik-Fit pulled in brokerage of £82.6m through its products in car, van, motorbike, pet and travel. It employs more than 1,100 people.