JSE-listed automotive group, Motus, has acquired Motor Parts Direct (UK), a business-to-business parts distribution business based in the United Kingdom, for R3.64 billion.
Motus said the acquisition is aligned to the group’s international growth strategy for its aftermarket parts business and will reduce the group’s dependency on vehicle sales.
It said the acquisition will also provide economies of scale, group procurement benefits and synergies.
The acquisition has been funded using Motus’s available cash and banking facilities.
All conditions precedent for the acquisition have been satisfied, and the acquisition was effective from 3 October 2022.
Commenting on the acquisition, Motus CEO Osman Arbee said Motus remains focused on deepening its competitiveness and relevance across the full automotive value chain.
“The acquired business is cash generative and asset light.
“It will provide economies of scale, procurement benefits and synergies.
“Key management personnel have been secured, and they are committed to continue managing the business,” he said.
Motor Parts Direct supplies motor vehicle parts primarily to the passenger and light commercial vehicle sector as well as to workshops in and around the UK and Wales through a network of 175 branches, of which 16 are also used as regional distribution centres.
The family-owned business was established in 1999 and has a customer base in excess of 14 000 and about 1 700 employees.
At end-June 2022, Motor Parts direct had a tangible net asset value of £30 million (R600 million), which is the minimum guaranteed amount to 30 September 2022.
No properties were purchased as part of the acquisition.
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