Ford Motor to Sell Kwik-Fit Chain at Loss

Ford Motor Co. said it agreed to sell its Kwik-Fit vehicle-repair chain to a private equity group for less than a third of what the world’s No. 2 auto maker paid for the business three years ago.

The private equity group, London-based CVC Capital Partners, will purchase Kwik-Fit for $500 million in cash and a note to be paid as CVC obtains outside financing, Ford said.

Regulatory approval for the deal also is needed.

Ford, which will retain a 19% equity stake in Kwik-Fit, said it will record a charge of $500 million in the third quarter as a result of the sale.

The company paid the equivalent of $1.6 billion for Kwik-Fit in 1999, as part of a strategy under former Chief Executive Jacques Nasser to branch out into a broad array of automotive products and services.

Shares of Dearborn, Mich.-based Ford closed down 20 cents at $11.64 on the NYSE.