REG-Halfords Group PLC Halfords Group PLC: Halfords receives investment in its Avayler business, with Bridgestone taking a 5% stake

HalfordsAnnouncement

01/11/2023 07:15

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   Halfords Group PLC (HFD)
   Halfords Group PLC: Halfords receives investment in its Avayler business,
   with Bridgestone taking a 5% stake

   01-Nov-2023 / 07:00 GMT/BST

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   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE
    7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
               VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018

                             FOR IMMEDIATE RELEASE

   1 Nov 2023

                               Halfords Group plc

          (“Halfords” and together with its subsidiaries, the “Group”)

     Halfords receives investment in its Avayler business, with Bridgestone
                               taking a 5% stake.

    

   Halfords, the UK’s leading provider  of Motoring and Cycling products  and
   services, today announces that it has reached an agreement for the sale of
   a 5%  minority stake  in  its Avayler  business, Avayler  Trading  Limited
   (“Avayler”), to  Bridgestone  Americas, Inc.  (“Bridgestone”),  a  leading
   global mobility  company,  and has  also  agreed  the terms  of  a  master
   commercial agreement  with Bridgestone  (the “Commercial  Agreement”)   to
   establish their business as  an ongoing client  of Avayler (together,  the
   “Transaction”).

   Headlines:

     • Bridgestone will acquire a  5% stake in  Avayler for consideration  of
       USD 3m, which will be satisfied in cash.
     • Avayler  is  a  wholly-owned  subsidiary  of  Halfords  and   provides
       automotive “software as a service” to  the Group, as well as to  other
       global mobility clients.
     • The proceeds of  the Transaction  will be used  for general  corporate
       purposes, including to support the continued growth of Avayler.
     • The Transaction establishes  Bridgestone as  a client  of the  Avayler
       business, becoming  the  latest  global mobility  client  to  use  the
       Avayler platform.

    

   Avayler overview

     • Avayler was launched in July  2021, having been developed in-house  by
       Halfords to manage  services across  garages, mobile  vans and  retail
       stores. It is a "software as a service” (SaaS) provider for automotive
       companies that operate in multiple locations. Avayler helps automotive
       businesses digitalise  their  service, from  online  customer  booking
       through to invoicing.
     • Avayler’s first customer was American  Tire Distributors Inc., one  of
       the largest independent distributors of tyres to the replacement  tyre
       market  in  North  America.  Since  then,  Avayler  has  won   several
       significant contracts  with  operators  around  the  globe,  including
       Tirebuyer in the USA and Mobivia in Central Europe.

   Transaction summary

     • Bridgestone and Halfords’  wholly owned  subsidiary, Avayler  Holdings
       Limited (“Avayler  Holdings”),  have  entered into  a  share  purchase
       agreement pursuant to  which Bridgestone  has agreed to  acquire a  5%
       stake in Avayler for consideration of  USD 3m which will be  satisfied
       in cash.
     • Halfords, Avayler Holdings, Avayler and Bridgestone have also  entered
       into  a   shareholders’  agreement   in  relation   to  Avayler.   The
       shareholders’   agreement   affords   Bridgestone   certain   minority
       shareholder  protections,  including  the  right  to  compel   Avayler
       Holdings to purchase all of Bridgestone’s shares in Avayler if certain
       events occur. If  that right  is exercised by  Bridgestone, the  price
       payable by Avayler Holdings (the “Put Option Price”) for Bridgestone’s
       shares in Avayler will be driven by Avayler’s financial performance at
       the time  of  exercise and  can  (at Avayler  Holdings’  election)  be
       settled in cash or in Halfords shares. Halfords has guaranteed Avayler
       Holdings’ obligation to pay the Put Option Price to Bridgestone.
     • Under the Commercial Agreement, which has an initial term of 15  years
       (with certain  break rights),  Avayler will  provide Bridgestone  with
       access to Avayler’s  in-garage and  van software products  as well  as
       certain services  to facilitate  Bridgestone’s  use of  it,  including
       services relating  to  maintenance,  development,  implementation  and
       support.  The  Commercial  Agreement  provides  for  the  roll-out  of
       Avayler’s products across  Bridgestone’s retail and  van operation  in
       the USA.

   Graham Stapleton, Chief Executive Officer of Halfords, commented:

   “Since its launch a little over two years ago, Avayler has been chosen  by
   some  of  the  largest  automotive  businesses  in  the  world  who   have
   immediately realised  the  compelling  value  that it  can  add  to  their
   operations. Today’s  investment  from  Bridgestone,  one  of  the  world’s
   largest mobility  companies with  over 3,000  garages and  vans under  its
   world-wide operation, is another  fantastic endorsement for the  platform,
   and the  length  and  scope  of the  agreement  fuels  our  confidence  in
   Avayler’s long-term  potential as  we  continue to  roll  it out  to  more
   clients around the world.”

   Avayler had  gross  assets  as  at 31st  March  2023  of  £3,054,618,  and
   generated a loss of £74,662 in the financial year ending March 2023.

    

   Enquiries

   Investors & Analysts (Halfords) 

   Jo Hartley, Chief Financial Officer 

   Andrew Smith, Group Financial Controller 

   Louise Richardson, Head of Investor Relations  +44 (0) 7483 457
   415                                                   

    

   Media (Powerscourt)  +44 (0) 20 7250 1446

   Rob Greening    halfords@powerscourt-group.com

   Nick Hayns

   Elizabeth Kittle

   The person  responsible for  releasing this  announcement is  Jo  Hartley,
   Chief Financial Officer.

    

   Notes to Editors

    1 www.halfords.com                        
    2 www.avayler.com                   
     3 www.tredz.co.uk                   
     4 www.halfordscompany.com                     

   Halfords is the UK’s leading provider of motoring and cycling services and
   products. Customers shop  at 393  Halfords stores,  2 Performance  Cycling
   stores (trading  as Tredz  and Giant),  643 garages  (trading as  Halfords
   Autocentres, McConechy’s, Universal,  National Tyres and  Lodge Tyre)  and
   have access to 264 mobile service vans (trading as Halfords Mobile Expert,
   Tyres on the Drive  and National), 479 commercial  vans and 5 HME  Cycling
   vans. 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 announcement 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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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB00B012TP20
   Category Code: MSCH
   TIDM:          HFD
   LEI Code:      54930086FKBWWJIOBI79
   Sequence No.:  281805
   EQS News ID:   1762043


    
   End of Announcement EQS News Service

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