Literacy Capital plc (“Literacy”) has announced the sale of its portfolio company Tyrefix Group (“Tyrefix”), to Citira AB (“Citira”), a Northern European tyre management provider backed by Nordic private equity investor, Norvestor (“Norvestor”).
Tyrefix is the market-leading provider in the UK of tyre repair and replacement to the plant market. Originally founded in 1984 under a franchise model, the business acquired all franchises in the following thirty years to become the only national provider of its services in the UK market. Today, the business has grown to employ approximately 160 staff, operating across 20 locations in the UK and serving 1,500 active customers.
Literacy Capital plc acquired a majority stake in the business in 2020. The investment facilitated a succession plan for the founder, who retired as part of the transaction. Through its investment, Literacy backed the founder’s son, Oliver Johnson, to become CEO and a shareholder in the business.
New senior recruits were made to augment the management team. Literacy strengthened the board as part of its investment, with Tony Buffin, formerly the COO and CFO of Travis Perkins plc, joining at completion in 2020. Following completion of Literacy’s investment, Jon Pitman joined as CFO and Steve Bareham as Sales & Marketing Director.
During Literacy’s five-year investment period, the management team (led by Oliver, Jon and Steve) doubled Tyrefix’s revenue. This was achieved through expanding to a new headquarters in Ibstock, launching two new revenue streams organically and acquiring two businesses. The acquisitions enabled Tyrefix to grow market share and broaden its range of service offerings to customers. Follow-on funding was provided by Literacy Capital to support these growth initiatives.
Citira is a tyre management provider, operating primarily in the Nordics and Poland. Norvestor acquired a majority stake in Citira (formerly known as Colmec) in 2023. The acquisition of Tyrefix enables Citira to enter the UK market, providing support to the management team who are continuing in their roles to further scale the business organically and through acquisition.
The sale will generate £14.7m of cash for Literacy Capital plc – a premium of 59% to carrying value, 2.5x money-on-money return and a 25.0% IRR on its realisation of Tyrefix.
Signing and unconditional exchange have taken place, with completion expected in early February 2026.
Jesse Portner, Literacy Capital Investment Director, commented:
“We are pleased to announce another successful sale at a significant premium to the reported carrying value, generating a meaningful 2.5x money-on-money return and a 25.0% IRR for Literacy Capital.
Tyrefix has been part of our portfolio for over five years, with CEO and CFO, Oliver and Jon expanding the business and gaining market share during that period, resulting in strong interest in Tyrefix from strategic acquirers.
The Tyrefix team has been a pleasure to work with, and we wish them the very best as they work with Citira to continue the expansion of Tyrefix.”