Bapcor bids for Hellaby

Australian auto aftermarket parts business Bapcor has made a takeover offer for New Zealand distributor Hellaby Holdings – with the aim of creating a clear Australasian leader in the industry.

The offer announced today, of NZ$3.30 per share, is for 100% of shares in Hellaby Holdings. Agreements have already been secured for 30% of the shares. Employees of both companies are being reassured the takeover will enhance, rather than jeopardise, their careers. Bapcor CEO Darryl Abotomey says: “Hellaby and Bapcor employees will receive enhanced career opportunities. “The new entity will become the clear Australasian leader in the automotive aftermarket.” Hellaby’s Automotive Group trades from more than 120 locations in Australia and New Zealand and employs more than 800 staff. Bapcor, based in Australia, provides automotive aftermarket parts, accessories, equipment, and motor vehicle servicing, with more than 750 locations in Australia. Since listing in 2014, the company has grown significantly and it now has a (NZ)$1.5 billion market share. Abotomey says the takeover of Hellaby, if successful, will enable Bapcor to enter the New Zealand automotive parts market. Bapcor will use Hellaby’s scale and “proven industry expertise” to improve the service and range of products offered in New Zealand. Bapcor will also look for opportunities to expand in New Zealand, he says. “If our offer is accepted we will offer Hellaby customers a greater customer experience through new product ranges, technology and proprietary customer loyalty programmes.” The offer of NZ$3.30 from Bapcor Finance Pty includes a 14% premium on the share price average over the last month. It is conditional on at least 90% of shares being sold, obtaining any consents required from the New Zealand Overseas Investment Office, and other usual conditions. An application will be filed with the New Zealand Overseas Investment Office today. Bapcor believes its cash offer should be highly attractive to Hellaby shareholders, particularly given Hellaby’s recent annual results, which highlighted uncertainty for some of its businesses. Well-known businesses affected Hellaby Holding’s Automotive Group businesses include: • Wholesale distributor Brake & Transmission (53 branches in New Zealand). • Autolign (nine wholesale branches, 22 franchise outlets under the Shock Shop brand in New Zealand). • Distributor Diesel Distributors (five branches Australia and New Zealand). • Distributor HCB Technologies (eight branches in New Zealand, supply arrangements with 100 Battery Town outlets). • Wholesale distributor Federal Batteries (three branches in Australia). • Auto-electrical distributor JAS Oceania Australia (22 branches in Australia). • Auto-electrical national distributor JAS Oceania New Zealand. • New Zealand supplier Truck & Trailer Parts. • Importer and distributor Premier Auto Trade (five branches in Australia). • Wholesale distributor TRS Tyre & Wheel (five branches in New Zealand). Businesses already owned by Bapcor include Burson Auto Parts, Autobarn, Autopro, Opposite Lock, Midas, ABS and Metcash Automotive.