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Burson Group to acquire Metcash Automotive

ABR Staff Writer Published 15 June 2015

Australia-based automotive aftermarket parts distributors Burson Group has inked an agreement to acquire Metcash Automotive Holdings from Metcash Trading in a deal valued at $275m.

The transaction, expected to be closed next month, will fetch Metcash $210m as net proceeds after a tax of $210m.

The acquisition will be funded through a mix of equity and debt that would include $218m through an underwritten pro-rata accelerated renounceable entitlement offer, around $15m placement to entities and $71m from increased debt facilities.

Burson Group managing director and CEO Darryl Abotomey said: "The acquisition complements our current trade focus, delivers increased scale and opens new avenues of growth. Importantly, our strategy for the Burson branded store network including our trade focus and target of 175 stores by June 2019 remains unchanged. MAH is a high quality business where we see a number of opportunities to drive growth under BAP's ownership."

There are several automotive franchise systems such as, Autobarn, Autopro, ABS and Midas under Metcash Automotive network.

Metcash CEO Ian Morrice said: "We will redeploy capital to strengthen the Group's balance sheet and invest in our core businesses. The Automotive Business will become part of a sector specialist owner with access to the capital needed for expansion of the business."