Ford Motors said today that CVC Capital Partners intends to buy Kwik-Fit, Ford's European maintenance and light repair business.
CVC Capital Partners, a European private equity group, intends to sign an agreement to buy Kwik-Fit for $500 million in cash and a note that will be paid as CVC obtains outside financing, Ford said.
Ford spokesman Mr David Reuter said most of the payment will be in cash though he would not give further details.
Ford will record a one-time, after-tax charge of about $500 million in the third quarter of 2002 related to the sale of Kwik-Fit.
"The sale of Kwik-Fit is a positive outcome for Ford and CVC," Mr Reuter said. "As we have said since the beginning of the year, we want to divest non-core assets and this gets us very close towards our goal for the year".
The Kwik-Fit deal will be done by forming a new company and will be financed by funds managed by CVC, according to the release. The sale is expected to be done by the fourth quarter of 2002.