Tag Archive | "acquisitions"

GKN MELROSE: POLITICAL REACTION TO HOSTILE TAKEOVER

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GKN MELROSE: POLITICAL REACTION TO HOSTILE TAKEOVER


Melrose Industries has narrowly won its hostile takeover bid for GKN.

Following a ten-week battle that saw a war of words from GKN management as well as a number of alternative deals on the table, including a proposal from car parts maker Dana, the shareholders decided by a margin of 52 percent to sell to Melrose.

Despite assurances from Melrose, fears that the new buyer will simply wage a campaign of asset stripping as the takeover promises £8bn to be returned to shareholders, which will inevitably involve selling off parts of the business. Apart from car parts, GKN produces aviation components and has a number of defence contracts, leading to some speculation in the mainstream press that the deal might be stopped on national security grounds.

Business Secretary Greg Clark sought assurances from Melrose, saying that no company was ‘immune’ from takeover. Critics were keen to point out that such ‘assurances’ mean little in law, as was demonstrated when Kraft went back on promises made to Cadbury in 2009.

However, Defence Secretary Gavin Williams appears not to share Clark’s lasse-fare opinion, as he is reported as having ‘serious concerns’ about such a deal.

Former Defence Secretary [and owner of Haymarket Group] Lord Heseltine is quoted in the FT as saying that ‘no other country of our sort’ would allow the deal to go through.

Labour’s Jeremy Corbyn has said that the deal ‘must be stopped’ and that it does not make any sense ‘to put the interests of city speculators over the national interest’.

On completion of the deal, the Head Office in Reddich is tipped to be the first part of the operation to close.

 

 

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DANA MAKES BID FOR GKN

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DANA MAKES BID FOR GKN


U.S-based car parts maker Dana has made a bid for embattled engineering giant GKN.

A report in the FT says that Dana will offer $6bn for the drivetrain division and will consider opening a secondary listing on the London stock exchange.

GKN’s drivetrain business combined with Dana’s existing contracts would give shareholders 47 percent of the world’s biggest drive system supplier with annual sales of $14bn according to the paper.

Jim Kamsickas, Chief Exec of Dana was clear that the combination of the two firm’s strengths in road vehicle engineering was undisputable. “It would be impossible to poke a hole in this industrially” he said.

The new bid is in addition to the hostile offer to shareholders from Melrose Industries, previously reported on. The board of GKN has rejected the bid, but shareholders are currently considering it.

However, the Melrose bit is neither popular with the management, nor some key clients. Tom Williams, CEO of Airbus has been quoted as saying that it would be ‘impossible’ to work with the engineering company under a short-term business model.

“The industry does not lend itself to shorter term financial investment which naturally reduces R&D, budgets and limits vital innovation,” he told the Reuters news agency.

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MESSE FRANKFURT ACQUIRES FOREST EXHIBITIONS

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MESSE FRANKFURT ACQUIRES FOREST EXHIBITIONS


Event organiser Messe Frankfurt has acquired Forest Exhibitions to create Messe Frankfurt UK. Terms of the deal have not been disclosed.

Sherwood was the licence holder for Automechanika Birmingham, while Messe Frankfurt is the parent company.

Simon Albert, Event Director of Automechanika Birmingham will take the role of Managing Director of the new UK subsidiary replacing Rob Sherwood.

A note from Olivia Brockwell, Operations Executive at Messe Frankfurt UK, to exhibitors at the show read: “There will be no operational, commercial or legal impact on your relationship with Forest Exhibitions”.

“The event team remain unchanged, and we are full steam ahead with this year’s event”.

The show organiser will remain in the same

 

 

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GKN FIGHTS ‘OPPORTUNISTIC’ HOSTILE TAKEOVER BID

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GKN FIGHTS ‘OPPORTUNISTIC’ HOSTILE TAKEOVER BID


UK engineering company GKN is under threat from a hostile takeover from investment house Melrose Industries.  

Melrose  has made an unsolicited offer to shareholders to  acquire the entire issued share capital of GKN for 1.49 new Melrose shares and 81 pence in cash per share.

Melrose is known for turning engineering companies around and under the strapline ‘buy, sell, improve, sell’ it attempts to add value to the brands it acquires before selling them on, in a similar vein to a private equity. It’s website states it “finances acquisitions using a low level of leverage, improves the businesses by a mixture of investment and changed management focus, sells them and returns the proceeds to shareholders”.

However, the management of GKN do not want to sell to Melrose. In a letter to shareholders GKN Chairman Mike Turner blasts the approach as ‘entirely opportunistic’ and ‘low price and high risk’ before barbing: “Your board believes that Melrose is more focused on financial engineering than real engineering”.

“GKN is six times the size of Melrose’s largest acquisition and your Board believes that Melrose’s management team lacks relevant experience at Board level in several critical areas” wrote Turner, adding that he doen’t believe that Melrose has the necessary relationships with VMs and aircraft makers to make a success of the business. “Cars and aircraft are researched, designed, produced and serviced over several decades – your Board believes that a short term, private equity-style strategy is not the right way to provide sustained shareholder value in our sectors” he said.

GKN said in an earlier letter to shareholders that it would sell non-core assets and return £2.5bn to shareholders in response to the offer. 

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TEN ANDREW PAGE BRANCHES CLOSE FOLLOWING ‘OPERATIONAL REVIEW’


Ten branches of Andrew Page have been closed.

Carlisle and Ellesmere port closed last week. Cardiff, Peterborough, Kettering, Shrewsbury,Chesterfield and three others closed on Monday. Calls we made to affected branches diverted to a nearby Euro Car Pa

Andrew Page Kettering closed on Monday.

rts.  Meanwhile, managers from other branches took part in conference call on Tuesday.  

In a written statement, a spokesman for ECP said: “We can confirm that we have closed 10 Andrew Page branches, following the completion of a recent business operational review by the Andrew Page Management team.  There are no plans to close any further Andrew Page branches. We are currently working with employees at affected branches to look for alternative options within the ECP or Andrew Page network, and working closely with customers of these affected branches.”

Andrew Page was bought by the parent company of rival Euro Car Parts in 2016 immediately after the former went into administration. Following a lengthy investigation by the  Competition and Markets Authority, nine depots were proscribed to be closed in the interest of not ‘significantly reducing competition’

Interestingly, none of the branches closed over the past week were on the CMA list. Liphook, Scunthourpe, Wakefield and York were on the list, but remain on the company’s depot finder.

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AAG ACQUIRE FAST PARTS WALES AND MORE

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AAG ACQUIRE FAST PARTS WALES AND MORE


Newport-based factor chain Fast Parts Wales and Peterborough-based Hereward Car and Truck Components are among a list of businesses acquired by Alliance Automotive Group in the last quarter.

Fast Parts Wales is a three branch light vehicle factor business based in South Wales with depots in Abercarn, Cwmbran & Tredegar.  The business was started around 25 years ago by the Travis family and the deal also includes the FastRads cooling system business based in Abercarn. The annual sales are around £9m and prior to the acquisition the business was a member of AAG’s GROUPAUTO buying group.

Hereward Car and Truck Components is another family run business, started in 1983 by the Saddington family. The two-branch factor was a member of the IFA buying group prior to the acquisition by AAG. Annual sales have been around £2.8m.

Single branch factors Macclesfield Motor Factors, DMFX (Darlington) and GD Components (Anglesey) have also been acquired by AAG.

There’s more info in the January issue of CAT Magazine.

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VALEO COMPLETES FTE AUTOMOTIVE ACQUISITION

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VALEO COMPLETES FTE AUTOMOTIVE ACQUISITION


Parts maker Valeo has completed the acquisition of actuator firm FTE Automotive, having received clearances from the European Commission and the Turkish Competition Authority. All FTE employees will transfer to Valeo.

Valeo says that the acquisition will allow it to expand its offering of active hydraulic actuators, a fast-growing market that has benefited from the rise of hybrid and electric vehicles.

Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, said: “With the acquisition of FTE Automotive, Valeo is positioning itself as the technological leader on the actuators market and thereby consolidating its CO2 emissions reduction strategy. This acquisition will help strengthen Valeo’s Powertrain Systems business. We are happy to welcome FTE’s 3,800 employees to the Valeo Group.”

In 2016, FTE Automotive generated sales of around 550 million euros. The company has more than 3,800 employees and a diversified manufacturing footprint in eight countries, including Germany, the Czech Republic, Slovakia, Mexico and China.

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AUTOSUPPLIES ACQUIRES BUTLERS AUTOMOTIVE

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AUTOSUPPLIES ACQUIRES BUTLERS AUTOMOTIVE


Autosupplies Chesterfield Ltd has acquired Barnsley based motor factor Butlers Automotive with immediate effect.

The acquisition is the first of its kind for Autosupplies, having grown its head office and Bolsover branch to be one of the largest single branch motor factors in the UK, occupying a 40,000sqft site and employing more than 90 members of staff and managing a fleet of more than 50 delivery vehicles.

Butlers Automotive has been trading in Barnsley for more than 40 years, but in the past year has suffered setbacks with the tragic loss of both its owners Philip and Nicollette Parkin.

Tony Porter, Butlers Automotive Director, said: “To ensure the business continues to move forward, it needs to be under the stewardship of a vibrant business that understands the values of Butlers Automotive and that of its customers. We are delighted that family run business Autosupplies Chesterfield Ltd will be taking the business forward.”

David Clarke, Autosupplies Managing Director, said: “Firstly, I would like to pay tribute to Tony and the staff at Butlers Automotive for their professionalism and courage during a very difficult period.

“We are delighted to have secured Butlers Automotive’s future and can’t wait to get started. The name Butlers Automotive is highly regarded in Barnsley for its customer service and it is a name and brand that we are determined to grow. The business is founded on traditional values and this, coupled with the backing of the UK’s largest single branch motor factor in Autosupplies, means an exciting future ahead.”

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HAYNESPRO ACQUIRES E3 TECHNICAL

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HAYNESPRO ACQUIRES E3 TECHNICAL


Data solutions firm HaynesPro – a division of Haynes Publishing Group P.L.C, has announced the acquisition of Carweb’s e3 Technical business in order to strengthen its online presence. Full terms of the deal are yet to be confirmed.

The deal will see HaynesPro take control of the latter’s direct and indirect business which includes Repair and Maintenance Information (RMI), Vehicle Registration Mark (VRM) look-up software as well as its associated helpdesks and a number of Carweb’s employees. All customer contracts associated with the e3 Technical brand will also be transferred to the new owner.

“This acquisition is an important milestone in our European growth strategy and significantly enhances HaynesPro’s data offering”, said HaynesPro MD Peter van der Galiën, “Having worked with the E3 Technical team for many years, we know that we are bringing on board the best talent and capabilities in the industry.”

Darryl Watts, former e3 Technical Sales Director and new HaynesPro UK Managing Director, commented. “The acquisition reflects our strong commitment to providing UK partners and customers with the best possible technical data solutions. It also guarantees the continuity of existing services, without any interruptions during the hand-over, and ensures the development of future products to meet customer and partner needs.”

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BREAKING: THE PARTS ALLIANCE ACQUIRES BBC SUPERFACTORS

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BREAKING: THE PARTS ALLIANCE ACQUIRES BBC SUPERFACTORS


Business group The Parts Alliance has acquired long-term affiliate member BBC Superfactors.

The seven-branch chain was established thirty years ago by Gary Shulman and Peter Rostron and initially covered the Blackburn, Bury and Chorley areas, hence the name.

“Combining the dedication of our loyal staff team with the expertise of The Parts Alliance has proved to be a winning formula for us over several years,” said MD Gary Shulman.  “We’re excited to now strengthen this relationship to ensure our business continues to thrive long into the future.”

“Since joining The Parts Alliance in December 2012, BBC have posted consistent double-digit annual sales growth and have invested to achieve industry-leading service levels. We are very pleased to welcome our BBC colleagues in the team,” stated Peter Sephton, President and CEO, European Automotive Group.

File pic of team at Blackburn branch

“This acquisition strengthens our position in the UK market and underlines The Part Alliance’s capability of driving growth both organically and through acquisitions,” added Henry Buckley, President and CEO of the PA’s Canadian parent company, Uni-Select.

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