Privately owned Welshpool-based truck and trailer parts business Independant Parts will be acquired by ASX-listed Maxiparts in a deal worth $27 million.
Privately owned Welshpool-based truck and trailer parts business Independant Parts will be acquired by ASX-listed Maxiparts in a deal worth $27 million.
Maxiparts announced its move for Independant to the ASX this morning, citing the significant scale it would add to its existing WA operations by acquiring the decades old business.
Founded in 1990 by Ian Jones, Independant Parts is one of the largest remaining private businesses of its kind in the state with more than 450 customers and four retail centres at Perth, Port Hedland, Geraldton and Bunbury.
It employs around 60 WA staff, and products include transmissions and differentials, drivelines, brake parts, trailer parts, general truck parts and accessories.
Independant generated revenue of $45.4 million last financial year, with EBITDA of $3.4 million. Its revenue grew at a compound annual growth rate of around 16 per cent between the 2021 and 2023 financial years.
“The acquisition of IP will be highly complementary to Maxiparts and is fully aligned with our stated acquisition criteria,” Maxiparts managing director and chief executive Peter Loimaranta said.
The deal will add three additional stores to Maxiparts’ WA operations post-consolidation, and embed operations with national logistics and mining customers in key mining regions.
Around 50 per cent of Independant’s FY23 revenue came from the Goldfields, Mid West and Pilbara.
Maxiparts will fund its move for Independant from existing cash, a $10 million extension to its current $20 million debt facility, and via a fully underwritten $17.2 million institutional placement.
The cash will also help subsidise a $1.9 million move for automotive supply firm Forch Brisbane by Forch Australia, of which Maxiparts is an 80 per cent owner.
Maxiparts expects to complete its acquisition of the two businesses by the end of 2023.
The Maxiparts purchase comes two-and-a-half years after Perth-based private equity firm Viburnum Funds bankrolled a management buyout at Independant.
Perth-based firm Modus Capital acted as corporate advisor to Independant Parts on the deal.
Modus advised Perth contractor Adenco on its acquisition by UK engineering firm RSK Group earlier this year, and in 2022 facilitated Orica’s $260 million move for Axis Mining Technology.
