Caledonia Investments has invested £55m to acquire a majority stake in Direct Tyre Management (DTM).

The management team has reinvested alongside Caledonia to acquire 100% of the business from investors including Palatine Private Equity.

Founded in 2004, DTM provides specialist, independent outsourced tyre management services and has consistently achieved year-on-year growth with a revenue compound annual growth rate (CAGR) of around 16% over the last 15 years. DTM has over 100 employees and serves over 250 fleet customers with an estimated 285,000 vehicles and 1.3 million tyres under management.

Caladonia said in a statement that the acquisition exemplifies its strategy of investing in “quality, robust and well-established companies”.

“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,” added Caledonia’s head of private capital, Tom Leader.

“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.”

---