SYDNEY: MotorCycle Holdings Ltd. (ASX: MTO) has announced a strategic acquisition of select dealership assets from Peter Stevens Motorcycles Pty Ltd and Harley Heaven Pty Ltd, both currently under administration. The deal, valued between $7 million and $9 million, will be funded through MTO’s existing cash reserves and bailment facilities.
Under the binding asset sale agreement finalized June 27, MotorCycle Holdings will acquire seven dealerships and associated eCommerce platforms across Australia, including high-profile Harley-Heaven locations in Sydney, Adelaide, Perth and Penrith, and Peter Stevens dealerships in Adelaide and Dandenong.
The acquisition is expected to increase MTO’s national motorcycle market share from 16.4% to 20% and contribute to earnings accretion starting from the first half of fiscal 2026.
“This is a pivotal opportunity that accelerates our growth strategy and reinforces our market leadership without incurring additional goodwill,” the company said in a management presentation.
A phased integration approach — dubbed “isolate and stabilise” — will aim to minimize operational disruption and retain staff, customers and OEM relationships. MTO emphasized the acquisition’s alignment with long-term strategic goals, including OEM expansion and shared services efficiencies.
Legal and financial advisement was provided by Clayton Utz and Ernst & Young, respectively, while Morgans Corporate served as corporate adviser.
Completion of the transaction is subject to securing industry licenses and meeting staff transfer thresholds to ensure operational continuity.
MTO projects the acquisition will add approximately $144 million in revenue on a FY24 pro-forma basis, with a corresponding net profit before tax of $2.5 million.