Motus buys Motor Parts Direct in the UK for R3.64bn
Automotive group Motus has acquired 100% of UK-based aftermarket parts business Motor Parts Direct for R3.64bn. Motus said the acquisition is aligned with its international growth strategy for the aftermarket parts business and will reduce its dependency on vehicle sales.
Source: ©Duncan Noakes - 123RF
Motor Parts Direct (MPD Group) is a family-owned business incorporated in England and Wales. Started in 1999, the MPD Group, is a business-to-business parts distribution business based in the UK that focuses on supplying motor vehicle parts, primarily to the passenger and light commercial vehicle sector, to workshops in and around the UK.
It has 175 branches in the UK and Wales, while 16 of the branches are also used as regional distribution centres. According to the statement shared by Motus, the MPD Group has a customer base of more than 14,000 active customers and it employs 1,700 staff members.
Synergies and procurement benefits
Sharing further rationale behind the deal, Motus said the acquisition will provide economies of scale, group procurement benefits and synergies, and noted that the MPD Group business is cash-generative and asset-light.
"The existing management team, excluding any members of the family, are committed to remain and grow the business. Key management have been secured and are committed to continue managing the business into the future," Motus said.
All conditions precedent for the acquisition have been satisfied, and the acquisition came into effect on 3 October 2022. The acquisition was funded using available cash and banking facilities.
