Bapcor acquires two automotive businesses

Company News

by David Chau

Automotive parts company, Bapcor Ltd (ASX:BAP), has entered contracts to acquire two specialist wholesale businesses.

Bapcor used to known as the ‘Burson Group’, until it recently changed its name. The two businesses it acquired are Baxters auto electrical and Roadsafe Automotive Products.

The company says Baxters and Roadsafe had $45 million in annual sales for the year to June 2016, and the transaction should be completed by 31 July.

Bapcor also says these acquisitions will be earnings per share positive from the completion date, and exceed its weighted average cost of capital.

Bapcor reported a net loss of $19.3 million at 31 December 2015.

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