Clearwater advises Palatine-backed Direct Tyre Management on its sale to Caledonia Private Capital

Transaction

Sale of Palatine-backed Direct Tyre Management to Caledonia Private Capital

Sell-side

Undisclosed

Role

Adviser to Palatine-backed Direct Tyre Management on its sale to Caledonia Private Capital

Sector

Industrial & Chemicals

Region

We have advised Palatine’s portfolio company Direct Tyre Management (DTM), the UK’s leading independent provider of specialist, outsourced tyre management services, in a secondary buy-out by Caledonia Private Capital (Caledonia).

The deal follows a record period of growth and investment for DTM, which works with major fleet operators to monitor and maintain their vehicles' tyres. In the last two years turnover has increased from £30m to £60m.

Palatine originally secured a majority investment in DTM in October 2020, through the acquisition of NRG Group. It separated the group into two standalone businesses – DTM and specialist fleet solutions provider NRG Riverside, which it sold separately in April this year.

Founded in 2004 and headquartered in Blackpool, DTM has over 100 employees and serves c.250 fleet customers with c.285,000 vehicles and c.1,300,000 tyres under management. Enabled by a proprietary technology platform, which allows customers to maximise their fleet efficiency, compliance and output, DTM connects the vehicles it manages to a national network of over 3,500 service provider locations.

The business’s commitment to ESG has led to two prestigious award wins in 2024, a Vision Award from investment organisation BVCA and being named Fleet Vision International's 2024 Most Sustainable Fleet Management Team.

Alongside our M&A team, Clearwater’s Debt Advisory, Modelling & Analytics and ESG teams also provided services to support this transaction.

DTM is well-placed to continue on its impressive trajectory. We’ve worked closely with the team to ensure the business is at the vanguard of fleet management technology and has thoroughly embraced the value of placing ESG at the front and centre of its growth strategy.

Clearwater has delivered an excellent result for us on this transaction. They had a clear plan and backed this up with real strength in depth and expertise. We are delighted with the support they have given all shareholders and management during the process.
Tom Wildig, Senior Investment Director, Palatine

Clearwater has been an excellent and trusted adviser to us from start to finish; we genuinely couldn’t have asked for more. They invested the time to thoroughly understand our business and the immense growth opportunity we have in our chosen markets.

They designed and delivered a slick process, identifying the right parties to engage with, which ultimately led to the selection of Caledonia as the perfect fit to support us on the next phase of our exciting growth journey.
Leigh Goodland, Chief Executive, DTM

We are proud to have become the new owners of DTM and to partner with Leigh Goodland and his team in the next stage of the company’s development. 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.
Tom Leader, Head of Caledonia Private Capital

It has been hugely satisfying to advise on the sale of DTM to Caledonia. DTM is a special business with a unique, tech-enabled service proposition and an exceptional management team led by Leigh Goodland.

From our first meeting, we felt the energy and ambition of the team, and are delighted to have found an ideal partner in Caledonia to support them deliver on their vision. We look forward to witnessing the continued success of the DTM proposition over many years to come.
Michael Loudon, Partner, Clearwater

DTM is a fantastic business bettered only by its management team. Leigh, Kelly, and rest of the team will continue to build on the excellent work to date and further establish DTM’s position in the mobility value chain. Caledonia recognises and shares this ambition, and is an excellent partner to support the business on its next phase of growth.
James Malcharek, Director, Clearwater