Halfords Group PLC Acquisition of National

Halfords, the UK’s largest provider of Motoring and Cycling products and services, today announces that it has signed a sale and purchase agreement to purchase the entire issued share capital of Axle Group Holdings Ltd on a cash free, debt free basis, for total consideration of £62 million, subject to adjustment for normalised working capital. The Consideration will be paid in cash on the date of completion, which is expected to be 9 December 2021. A further investment of c.£17 million will be made post acquisition on associated capital expenditure and c.£2 million on integration costs.

National is a well-established business in the tyre and automotive servicing, maintenance and repair market, operating under the following brands: National Tyres and Autocare (“NTA”), Viking Wholesale Tyres (“Viking”) and Tyre Shopper. On completion of the Acquisition, National will be integrated into Halfords’ Autocentres business.

The directors of the Company believe that the Acquisition is both strategically and financially compelling, delivering on Halfords’ objective of evolving into a business more heavily weighted towards Motoring Services.

Graham Stapleton, Chief Executive Officer of Halfords, commented:

“This acquisition helps cement our position as the UK’s largest vehicle service, maintenance and repair business. It will also see us deliver on our established strategy of evolving Halfords to become a Motoring Services focused business, with Motoring revenue set to represent more than 70% of our pro- forma revenue following the acquisition.

National has a high quality, UK-wide network of garages and mobile tyre fitting vans, and 1,400 highly skilled colleagues, providing a complementary fit with Halfords’ existing operations. Post-acquisition, Halfords will have over 1,400 fixed or mobile Motoring Services locations, servicing a broad range of vehicles and delivering 7.5 million motoring jobs a year. This increased scale will bring the majority of UK-mainland motorists within a 20-minute drive of a Halfords garage, with even more vans available to provide mobile services at their home or work.

Given our recent track record of successfully acquiring and integrating businesses, and the potential we see to further grow our Motoring Services business in other areas of the country, I am very excited about our future growth prospects, and I look forward to welcoming the new teams to the business.”

Post-completion, Halfords will have approximately 604 garages, 234 consumer vans, 190 commercial van and 8 warehouses.

 

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