Motus acquires leading UK-based parts distribution group
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Automotive group Motus, through its UK-based subsidiary, Motus Holdings (UK), has acquired all the shares of FAI Automotive plc (FAI) from October 1 this year, it said in a statement on Friday.
The purchase price, based on an enterprise value of GBP35 million (R700 million) and the effective cash outflow of GBP27.5m (R550 million), would be funded from Motus’s available cash resources and funding facilities.
FAI, established in 1968, has over 40 000 product offerings covering all major vehicle manufacturers. It is situated in Leighton Buzzard, Bedfordshire, in the UK, with a leased distribution warehouse of 10,000 square metres and is a leading independent distributor of replacement automotive parts globally, including the UK and Europe.
Motus said FAI was a highly reputable brand in the replacement parts industry and was renowned for a high-quality range of products covering globally manufactured passenger vehicles and light commercial vans.
The existing management team would continue to manage the business on a day-to-day basis post the transaction.
Motus said the acquisition underpinned its plans to expand its Aftermarket Parts (MAP) business. There were synergies with the existing MAP business to procure products at competitive prices from the Far East, including China and Taiwan, through combined buying power, as well as to utilise and share the existing distribution centres in the region.
FAI’s product line up was similar and complementary to the MAP business, in particular, components which include engine, suspension, steering and braking parts, as well as a well-established and growing private label offerings.–
BUSINESS REPORT ONLINE