A HAMPSHIRE tyre firm has been snapped up by a Japanese competitor in a multi-million-pound deal.

Micheldever Tyre Services (MTS), the UK’s second-largest car tyre distributor, has been acquired by Sumitomo Rubber Industries from private equity firm Graphite Capital in a deal set be worth around £215m.

The business has grown rapidly since Graphite’s initial investment in 2006.

In the past decade annual turnover has grown from £150m to more than £320m with its workforce more than trebling from 500 to 1,600.

The firm supplies around 6million tyres a year to more than 6,000 retailers across the country and direct to motorists.

Chief executive of Micheldever Tyre services, Duncan Wilkes said: “This announcement highlights the success that MTS has enjoyed over the last ten years and the growth the company has experienced under Graphite Capital’s ownership. 

“SRI is fully committed to the UK market and to supporting our proven approach to growing the business.

"Today’s transaction ensures continuity of both management and of our successful multi-brand, multi-segment strategy.”

Mr Wilkes added: “Our success has been built on MTS offering customers a wide range of brands, providing choice across budget, mid-range and premium categories.

"We will remain fully committed to selling and developing all these brands as we look to future growth.’’

Sumintomo Rubber Industries, based in Kobe, Japan employs more than 33,000 people across the world with 86 per cent of revenues from its tyre operations. 

In a statement the company said: “There will be no change to Micheldever Tyre Services’ current management structure with all executive directors remaining in role to continue to drive long-term success.’’

They added:”Having a greater degree of freedom to expand its business in Europe following the dissolution of an alliance agreement with Goodyear in October 2015.

‘’We have been active in taking measures to strengthen its production capabilities and expand its sales.

"As part of its efforts to strengthen the market position of its FALKEN tire brand in the UK, SRI decided to acquire Micheldever.’’

The deal, which is subject to European Commission approval, will allow SRI to expand its operations in Europe and North America but now means the country’s two biggest tyre distributors now belong to Japanese companies, following the acquisition of Kwik-Fit in 2011 by Itochu. 

The purchase is the latest in a series of post-Brexit takeovers by Japanese firms who spent over £27.4 billion on purchasing 43 British firms last year according to financial markets analysis firm Dealogic.