Following from last week’s announcement that Motor Parts Direct has been acquired by Motus Aftermarket Parts, MPD has made public two letters sent to staff at the time.
The first note is from founder Mukesh Shah in which he explains his motivation behind selling the business, as well as setting out the details of a loyalty bonus for those that remain with the company.
The second letter is from Malcolm Perrie, CEO of Motus Aftermarket Parts in which he confirms the acquisition, thanks Mukesh and explains some of Motus’ strategic plan. He also confirms that Darren Wykes will remain as Managing Director and will join the Motus Aftermarket Executive team. The day-to-day management team will remain the same and Perrie suggests a ‘hands off’ role from the parent company in most matters, simply providing resources and assistance where required.
Perrie concludes by welcoming all at MPD into the business and adds that he will endeavour to visit branches and meet as many of the staff as possible.
The letters are reproduced in full below. The first is from Mukesh Shah:
Over the last few years, we have been through some great challenges commencing with Brexit and followed by Covid-19 pandemic, this was a period of unprecedented challenges. Many businesses suffered but luckily, MPD’s fortunes changed, and it has been on a continued expansion trail. In the last couple of years MPD has opened over 30 new branches, 2 CSD’s and relocated 4 branches. MPD currently has 173 branches, over 1,700 dedicated staff and a distribution fleet of over 850 vans. The business of Automotive Distribution Centre Limited and C P Diesel Limited has now been brought under the MPD’s ownership.
I am today writing to advise you after this time of reflection I have made the biggest decision of my life and to bring to your notice and announce that the current ownership of MPD has been transferred to its new owners “Motus”. The decision to sell MPD has certainly not been taken lightly. As you all know, it has always been my personal ambition with the help of the superb team that we have in place to grow the MPD business to 200 branches with a turnover of £200m.
Motus is a listed company on the South African stock exchange. It is South Africa’s leading automotive group, employing over 17,500 people globally with selected international presence primarily in the UK, Australia, as well as a limited presence in Southeast Asia and Southern and East Africa. We are convinced the business is being handed over to a strong and reputable organization that will carry on with the legacy that has been created by everyone who has worked for and contributed to MPD’s growth. We feel that this is an excellent opportunity for MPD to be taken to the next stage of its growth. Motus strives to create an inclusive and collaborative high-performance culture that enables business results, creates opportunities for all employees and provides the benefit of diverse thinking.
Motor Parts Direct will continue operating as it has always done under the same direction of its current management team, it will be business as usual. To say thank you to all our MPD staff I have personally agreed to put in place a loyalty payment depending on how long they have been employed, this is my way of saying thank you. I am also planning to visit every branch to thank them for all their hard work in making Motor Parts Direct one of the leading motor factors in the UK. I would like to wish Motor Parts Direct all the best, on their continued expansion plans, I will be leaving behind a great company with great customer and staff values which will carry on under Motus.
My decision will enable me to spend more time with my family and continue my charity work which is very dear to me in the UK and overseas.
The second from Malcolm Perrie:
As you will have no doubt heard, Mukesh, after 23 years of building a wonderful business in Motor Parts Direct (MPD) has decided to move into retirement and focus on other aspects of his life. As part of this change, Motus Aftermarket Parts (MAP), a division of Motus, a company listed on the Johannesburg Stock Exchange, has acquired 100% of MPD, effective 1 October 2022.
This acquisition is in line with the overall Motus strategy and an integral part of the MAP strategic plan that was developed in 2015 that started with the formation of MAP through the unification of several parts businesses that were already owned by Motus. Following this unification, investments have been made in several motor factor businesses in South Africa and neighbouring countries including Zimbabwe, Mozambique and Namibia. In addition, further investments were made in both Taiwan and China and the establishment of a distribution centre in Shanghai, China, to support a global sales initiative.
Our expansive journey into the UK began one year ago with the acquisition of FAI and this has been expanded upon with the acquisition of MPD earlier this week.
Our investment philosophy is to look for strong and well managed businesses that fit our strategy and, once acquired, to allow them to continue on their strategic path with existing management and existing strategies. MAP’s role is a one of “hands off” and supporting “business as usual” by providing resources and assistance where required.
Following this acquisition, Darren will continue as Managing Director of MPD and will join the Motus Aftermarket Executive team, reporting directly to me. Congratulations to Darren on this appointment. As per the commitment I have personally made to Darren, Motus has utmost confidence in the management team of MPD to continue to drive the successful growth strategy started by Mukesh.
I would also like to thank Mukesh for the faith he has shown in Motus by choosing us to take MPO forward. I would like to take this opportunity to warmly welcome you to the Motus family which now comprises in excess of 19,000 employees worldwide of which over 5,000 are deployed in the Aftermarket Division. Over the coming months I will endeavour, on my visits to the UK, to visit branches and attend regional meetings to personally meet you. Should you have any questions or concerns please feel free to speak with your line manager.
Best Wishes Malcolm Perrie CEO : Motus Aftermarket Parts