Motus Holdings, a wholly-owned subsidiary of Motus, has agreed to buy Motor Parts Direct (MPD) for GBP 182mn. The deal follows a cautionary announcement on the 14th of September in which the JSE-listed company stated it was in talks regarding a potential acquisition of an aftermarket parts business.
You can read that article here.
The acquisition of an aftermarket parts business, to reduce dependency on vehicle sales, reflects the company’s growth strategy and provides economies of scale, group procurement benefits and synergies. Furthermore, it is a cash generative and asset light business.
The sale price will be paid on 3 October 2022 and is limited to a maximum total consideration of GBP 190mn.
About Motor Parts Direct
The MPD is a family-owned business that was established in 1999. It is a B2B distribution business that supplies motor vehicle parts to the passenger and light commercial vehicle sector. It has 175 branches of which sixteen are regional distribution centres. It has a customer base of 14,000 active customers, none of which make up more than 0.5% of total sales.
The company has 1,700 employees.
Shareholders
Shakti Investments: 25%
Balaji Ltd: 24%
Satet Ltd: 14%
Nandi Ltd: 14%
Stonyhill Ltd: 24%