Halfords is set to acquire the group behind the likes of National Tyres and Autocare in a deal worth more than £60m.
The fast-fit giant has signed a sale and purchase agreement to purchase the entire issued share capital of Stockport-headquartered Axle Group Holdings, whose brands also include Viking Wholesale Tyres and Tyre Shopper, for £62m.
In a statement to the London Stock Exchange, Halfords said the deal surpasses its current target of 550 garages and 200 consumer vans.
Post-completion, Halfords will have approximately 604 garages, 234 consumer vans and 190 commercial vans.
Including retail stores this will mean a combined total of over 1,400 fixed or mobile motoring services locations.
Halfords chief executive Graham Stapleton said: “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.”
The deal is expected to complete on December 9, 2021 and will see National become integrated into the Halfords’ autocentres business.
James Dow of Dow Schofield Watts provided corporate finance advice to Axle Group.