Private equity group CVC has said that it on Friday it agreed to sell tyre and exhaust business Kwik-Fit to a division of European private equity firm PAI for 800 million pounds including debt.

Kwik-Fit is Europe's biggest independent auto parts, repair and replacement specialist, with over 1,900 outlets, including Speedy in France and Pit Stop in Germany, Reuters reported.

PAI, which is buying Kwik-Fit through its Speedy 1 division, beat out rivals U.S. buyout giant Kohlberg Kravis Roberts & Co and Japanese tyre maker Bridgestone in a closely fought auction, a source close to the process reportedly said, according to Reuters.

"PAI came out on top. They were ready to sign last night and we took the deal," the Reuters source said.

CVC acquired the business in 1999 from U.S. automaker Ford for 330 million pounds, after Ford bought it in 2002 for over $1 billion, Reuters said.

Ford retained a 19 percent stake in the business, management held 11 percent, while CVC owned the rest, the source said, adding that 100 percent of the company is being sold to PAI, the Reuters report added.

"PAI intends to support the management team to further strengthen Kwik-Fit's leading position in the fast-fit European market," PAI partner Hamish Mackenzie said in a statement.