Keyhaven Capital Partners announces agreement to exit Steer Automotive Group, the UK’s leading B2B automotive services platform

• Keyhaven announces the agreement to sell its investment in Steer Automotive Group to Oakley Capital, a pan-European financial investor
• Keyhaven invested in Steer in 2021 alongside Chiltern Capital and the management team

Keyhaven Capital Partners, the specialist private equity firm dedicated to the European lower mid-market, announces it has agreed to exit its investment in Steer Automotive Group, the UK’s largest and fastest-growing independent collision repair group, to Oakley Capital, a pan-European financial investor. Keyhaven backed Chiltern Capital’s investment into Steer in 2021 as part of its longstanding relationship with the sponsor.

During Keyhaven’s three-year holding period, Steer established itself as the UK’s leading B2B automotive services platform, completing 18 acquisitions to create a network of over 100 repair centres across the country. The group has expanded from its core passenger car repair market into the adjacent markets of luxury car repair, commercial vehicle repair and technical services.

Steer is a key partner for the UK’s leading vehicle insurers, accident management companies and OEM dealerships, and has increased its number of manufacturer accreditations from 14 at entry to 43 currently. This includes recommendation and approval for major brands such as Porsche, Rolls Royce, Bentley, McLaren, Lamborghini, Aston Martin, JLR, Tesla, Mercedes Benz, Volkswagen Group, Stellantis and Ford.

Steer has invested significantly in its operational infrastructure and management team which has vastly improved its operational efficiency, while also introducing data & analytics tools to enhance KPI monitoring. In 2023, Steer was ranked 36th in The Sunday Times’ list of 100 fastest-growing businesses in the UK, separately being recognised by The Independent as one of the top 100 job creators in the country and was awarded ‘ESG Excellence accreditation’ for its sustainability strategy.

Steer now represents approximately 5% of the UK collision repair market, employing over 2,300 people and repairing more than 115,000 vehicles a year.

As with all Keyhaven investments, responsibility initiatives have been integral to Steer’s value creation. A number of environmental and sustainability programmes were implemented, including considerable investment in technology such as remote estimation of vehicle damage, which has halved journey times and emissions, and securing a five-year fixed 100% renewable energy contract. These measures contributed to Steer achieving carbon-neutral status in accordance with the PAS 2060 certification and led to the business being awarded various industry accreditations. The company also launched the Steer Academy to diversify recruitment channels, train and upskill the next generation of vehicle technicians.

The agreement was signed in December 2023 with closing expected to take place in the second quarter of 2024. The transaction represents a significant exit for Keyhaven.

Richard Steer, Founder and CEO of Steer, said: “Over recent years we have built Steer into the UK’s leading automotive repair business, with major investments in the talent, technology, and systems required to serve the Automotive Industry as it undergoes huge change. Both Chiltern and Keyhaven have been great supporters of our business and have been instrumental in delivering the growth we have achieved to date.”

Commenting on the sale, Andrew Ware, Partner at Keyhaven said: “We are delighted by the successful and planned exit of Steer which is ahead of expectations, marking a significant transaction for Keyhaven. We partnered with Chiltern as part of our longstanding relationship with the sponsor, illustrating Keyhaven’s relationship-driven sourcing approach. When we invested in 2021, Steer was a regional B2B vehicle accident repair business with a strong local brand reputation. The business aligned with our investment strategy as it was at a clear inflection point for change; and it has since scaled its capacity, distribution network, and product portfolio to become an established industry leader in the UK market.”

Commenting on the sale, Alex Sheffield, Partner at Chiltern Capital said: “We recognised Steer as a business with significant potential and we have been delighted to support the company in becoming the market leader in the UK over the last three years. It’s been a pleasure to work alongside a highly talented team, led by Richard Steer, as they have delivered unprecedented growth and built a truly exceptional business.”

About Keyhaven Capital Partners

Keyhaven Capital Partners is a specialist private equity firm, headquartered in London, exclusively focused on the European lower-mid market. By partnering with best-in-class sponsors, Keyhaven strategically invests in high-quality companies, aiming to achieve robust risk-adjusted returns and diversification. With a diverse team, a network embedded in local markets and a flexible approach to deal making, Keyhaven works with niche industry leaders to accelerate growth, building robust, sustainable businesses that deliver for their investors, employees and local communities.

Since its foundation in 2003, Keyhaven has invested or advised on in excess of €2 billion and made more than 60 investments in Europe.

About Chiltern Capital

Chiltern Capital is a lower mid-market focused private investment firm operating across the UK and Ireland. Founded in 2015, Chiltern supports highly ambitious management teams to build market leaders through organic and acquisition growth strategies.

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