Automotive Brands Group – acquisition by Metcash
Miles Advisory Partners advised the shareholders of Automotive Brands Group on the sale of the business to Metcash Ltd (ASX: MTS).
Transaction Details
Sector
Consumer
Miles Role
Sell-side advisor to the shareholders of Automotive Brands Group
Deal Type
Business Divestment
Year Completed
2012
Contacts for this Transaction
Lloyd Way
Managing Director
Overview
- Automotive Brands Group was an automotive aftermarket distributor and franchise operator, supplying a network of more than 240 stores and owning the Autobarn retail franchise and Autopro trade banner, together with a car-parts distribution division
- Miles was engaged to advise the shareholders of Automotive Brands Group on the divestment of the business
- Metcash acquired Automotive Brands Group, establishing the foundation of its automotive division
- Metcash was drawn to Automotive Brands Group’s market position, as clear number 2 in the market, and strong franchise network
Industry Context
Diversified wholesale and distribution groups expanded into the automotive aftermarket to diversify earnings into a category with recurring, non-discretionary demand from a large vehicle fleet. Owning both retail and trade franchise banners and parts distribution offers control across the value chain and scale in purchasing. For founder shareholders, a sale to a listed acquirer provides a premium exit and capital for the business to scale within a larger group.
