Palatine Exits Direct Tyre Management with Secondary Buy-Out by Caledonia

We have successfully exited Lancashire-based Direct Tyre Management (DTM) in a secondary buy-out by Caledonia Private Capital.

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.

We originally secured a majority investment in DTM in October 2020, through the acquisition of NRG Group. We separated the group into two standalone businesses – DTM and specialist fleet solutions provider NRG Riverside, which we sold to Astatine Investment Partners in April this year.

Founded in 2004 and headquartered in Blackpool, DTM is the largest independent tyre management provider in the UK. It uses smart technology to predict and prevent potential roadside failures supporting major fleet customers to reduce waste, increase vehicle safety and minimise costs, while being considerate to the environment.

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

Tom Wildig, Senior Investment Director at Palatine, said: “Under Leigh’s leadership and with the support of Executive Chairman Steve Dolton, DTM has grown to become the leading independent tyre management business in the UK, with excellent relationships with its staff, customers and suppliers.

“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 front and centre in its growth strategy.”

Leigh Goodland, Chief Executive of DTM, said: “Palatine has been a highly supportive investment partner and its leadership on ESG performance has been key to helping us develop a proposition that enables our customers to make more sustainable choices around how they operate their fleets.

“We have grown rapidly from a £30m turnover to a £60m turnover over the last two years by acquiring new business organically and through our ability to be both agile and independent providing customers with insight and recommendations leading to the most sustainable tyre choice.”

Our advisors on the deal included: Clearwater (corporate finance) (Michael Loudon, James Malcharek, Alex Fowler, Ffion Jones), Gateley (legal) (Rebecca Grisewood, Kate Richards, Adam Noble), CIL (commercial due diligence) (Jon Whiteman, Tim Perera) and PwC (financial due diligence) (Syedul Hussain, David Tomlinson).

Caledonia’s investment in DTM was led by Theo Tizard, James Lander, Dan Lock and Joe Carter Hepplewhite.

Caledonia’s advisors included: Travers Smith (Adam Orr, Alex Dixon and Rachel MacAthur), OC&C (Nic Farhi, Mark Jannaway and Haleh Taghinejadi), Deloitte (Tim Haden and Sam Ward) and PwC (James Tubby and Josh Whittingham).