*Updated to clarify cost breakdown
Halfords is to take over all 604 branches of National Tyres & Autocare, plus eight Viking wholesale warehouses and the Tyre Shopper website in a deal to acquire all shares in holdings company Axle Group, it was announced this afternoon.
Around 1,400 jobs will be transferred to Halfords, including National’s CEO, Tony Neill and there is no suggestion of any redundancies.
The deal comprises of a £62m consideration to be paid on completion, expected to be by December 9. A further investment of around £17 million will be made post acquisition on associated capital expenditure and £2 million on integration costs.
Halfords had previously expressed a desire to operate 800 garage branches in the UK, a figure it will now easily surpass, although it is unclear at this stage if the acquired business will continue to operate under the National Tyres brand.
Graham Stapleton, Chief Executive Officer of Halfords, commented: “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”.
Don’t miss the latest stories in the aftermarket. Sign up to the CAT newsletter here