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.
The principals of Mojo Group (Michael Poynton and Joshua Carter) will take up senior executive positions with MTO and Michael Poynton will also join the MTO board.
Completion of the acquisition is targeted for 31 October 2022. MTO Managing Director and founder, David Ahmet, said the acquisition of the Mojo Group made strategic sense.
importation and distribution of motorcycles, ATVs, and scooters (including electric models) into our existing product offering, increasing our warehouse capacity and expanding our distribution network,” he said.
“In addition, MTO continues to explore other motorcycle franchise acquisition opportunities to increase its market
share and geographic coverage in Australia.”