24th May 2016 06:56
LONDON (Alliance News) - Car parts and bicycle retailer Halfords Group PLC on Tuesday said it has acquired online bikes and accessories retailers Tredz Ltd and Wheelies Direct Ltd for GBP18.4 million.
Tredz specialises in the sale of premium bikes and cycling parts, accessories and clothing, while Wheelies provides bicycle replacements for insurance companies. Both companies are based in South Wales.
Halfords said the two businesses collectively generated revenue of around GBP32 million in the year ended February 29, and earnings before interest, tax, depreciation and amortisation of GBP2.4 million.
Halfords has settled the GBP18.4 million initial cash consideration from its existing borrowing facilities. Dependent upon the financial performance of Tredz in the year ending February 28, 2017, there will be an element of deferred consideration payable in 12 months.
The total purchase price is expected to equate to an Ebitda multiple of around seven times and the acquisition will be earnings enhancing from the first year of ownership, Halfords said.
"We are delighted with this acquisition, which we believe is a strong and complementary addition to the group, extending our presence in the online market for premium bikes, parts, accessories and clothing. We continue to believe in the long-term growth potential of the cycling market," Chief Executive Jill McDonald said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Halfords