REG-Halfords Group PLC Halfords Group PLC: Acquisition of Universal Tyre and Autocentres

HalfordsAnnouncement

19/03/2021 07:05

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   Halfords Group PLC (HFD)
   Halfords Group PLC: Acquisition of Universal Tyre and Autocentres

   19-March-2021 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   19 March 2021

       Halfords Group plc: Acquisition of Universal Tyre and Autocentres

              Building a market-leading Motoring Services business

    

   Halfords Group plc ("the  Group"), the UK's  leading provider of  motoring
   and cycling products and services, is  pleased to announce it has  reached
   agreement to  acquire  Universal  Tyre and  Autocentres  ("Universal"),  a
   well-established motoring services provider in  the South East of the  UK,
   for consideration of £15m. Approximately £9m of the purchase price relates
   to the  acquisition  of real-estate  and  the  net cash  position  of  the
   business, with  the  remaining  £6m  paying  for  the  underlying  trading
   business. We intend to  sell and lease back  the property within the  next
   few months.

   Based in Kent,  with 201  sites and 89  commercial vans  operating in  the
   South East and on the east coast of the UK, Universal specialises in  tyre
   services, including  the supply  and fit  of  tyres for  a wide  range  of
   vehicles, from cars to  commercial and agricultural  vehicles, as well  as
   providing general car  maintenance and repairs  such as brakes,  servicing
   and MOT. Universal is set to report  revenue in excess of £31m and  EBITDA
   in excess of £1.5m for the year ended 31 December 20202. Post-acquisition,
   we are confident we can deliver synergies to the combined business.

   This acquisition takes us closer to our stated ambition of having over 550
   garages in the UK and builds our coverage of the Commercial Truck and  Van
   market. Following the transaction, we now have 374 garages, 185 Commercial
   vans, and 136  Halfords Mobile  Expert vans operating  in our  Autocentres
   business. Combined  with  our  404  retail  stores,  we  provide  motoring
   services from over 1,000 locations, giving our customers unmatched  levels
   of convenience across the country.

   Following on from our acquisitions of  McConechy's and Tyres on the  Drive
   in 2019, this is another exciting step in the growth of Halfords' motoring
   servicing business as  we continue to  inspire and support  a lifetime  of
   motoring and  cycling,  and  establish ourselves  as  a  leading  motoring
   service provider in the UK.

   1. In addition to 20 garages, Universal also operate from 1 warehouse/head
   office and from 5 other sites.

   2. Subject to audit.

    

   Graham Stapleton, Chief Executive Officer, commented:

   "We have a clearly stated  strategy of building a market-leading  Motoring
   Services offer, and the acquisition of Universal is another important step
   forward in helping  us to  achieve that goal.  We continue  to see  strong
   demand for our  Autocentres, for  our expanding fleet  of Halfords  Mobile
   Expert vans, and for our growing commercial business. Universal will  help
   us to meet that demand whilst also expanding our geographic footprint in a
   market for which we see significant potential."

    

    

    

    

    

    

    

   Enquiries                                   
   Investors & Analysts (Halfords)                                          
   Loraine Woodhouse, Chief Financial Officer                               
                                                        +44 (0) 7483 360 675
   Neil Ferris, Corporate Finance Director
                                                  neil.ferris@halfords.co.uk
                                                         +44 (0) 1527 513189
   Andy Lynch, Head of Investor Relations
                                                 andrew.lynch@halfords.co.uk
                                                                            
   Media (Powerscourt)                                  +44 (0) 20 7250 1446
   Rob Greening                               halfords@powerscourt-group.com
   Lisa Kavanagh                                                            

   Notes to Editors

   www.halfords.com                   1 www.halfordscompany.com              
    2 www.tredz.co.uk

   Halfords is the UK's leading provider of motoring and cycling products and
   services. Customers shop  at 404  Halfords stores,  3 Performance  Cycling
   stores (trading  as Tredz  and Giant),  374 garages  (trading as  Halfords
   Autocentres, McConechy's and Universal), 185 commercial vans  (McConechy's
   and Universal) and  136 mobile  service vans (trading  as Halfords  Mobile
   Expert and Tyres on  the Drive). Customers can  also shop at  halfords.com
   and tredz.co.uk for pick up at their local store or direct home  delivery,
   as well as booking garage services online at halfords.com.

    

   Cautionary statement

   This report contains certain forward-looking statements with respect to
   the financial condition, results of operations, and businesses of Halfords
   Group plc. These statements and forecasts involve risk, uncertainty and
   assumptions because they relate to events and depend upon circumstances
   that will occur in the future. There are a number of factors that could
   cause actual results or developments to differ materially from those
   expressed or implied by these forward-looking statements. These
   forward-looking statements are made only as at the date of this
   announcement. Nothing in this announcement should be construed as a profit
   forecast. Except as required by law, Halfords Group plc has no obligation
   to update the forward-looking statements or to correct any inaccuracies
   therein

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   ISIN:           GB00B012TP20
   Category Code:  ACQ
   TIDM:           HFD
   LEI Code:       54930086FKBWWJIOBI79
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   95890
   EQS News ID:    1176850


    
   End of Announcement EQS News Service

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