SYDNEY, AUSTRALIA: MotorCycle Holdings Limited (ASX:MTO), Australia’s largest motorcycle dealership operator, will acquire 100% of Mojo Motorcycles Pty Ltd and Mojo Electric Vehicles Pty Ltd (together Mojo Group).

Mojo Group is a motorcycle, scooter, ATV, electric motorcycle, and genuine spare parts and accessories importer and distributor operating in Australia and New Zealand, with a 150-strong dealer network.

It is headquartered in Altona North (Vic) in a purpose-built 5,000-square-metre distribution centre, backed up by a 2,000-square-metre facility in Yatala (Qld) to increase total warehousing capacity to 2,500 vehicles.

MotorCycle Holdings will acquire Mojo Group from companies owned by Michael Poynton and Joshua Carter for consideration of up to $60 million on a cash free, debt free basis, comprised of:
• 11.539 million MTO shares
(escrowed for two years) (Consideration Shares); plus
• $20 million in cash; plus
• deferred consideration of up to $10 million.
MotorCycle Holdings Limited will fund the cash component of the consideration through an increase to its debt facility.

The acquisition price represents an earnings multiple of 4.1 times Mojo Group’s FY22 net profit before tax, and ona proforma FY22 consolidated basis the transaction is expected to be 18% earnings per share accretive before synergies, integration costs and PPA related amortisation.