Investment trust Caledonia Investments plc said it has paid £55 million to acquire a majority stake in Blackpool-based Direct Tyre Management Ltd, an independent provider of outsourced tyre management services to fleet operators. 

It said the DTM 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. Headquartered in Blackpool, it has over 100 employees and serves about 250 fleet customers with 285,000 vehicles and 1,300,000 tyres under management. 

Tom Leader, Caledonia’s Head of Private Capital, said: “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, said: “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.”