MotorCycle Holdings
(ASX:MTO), one of Australia’s largest motorbike dealers has agreed to buy Cassons, a wholesaler and retailer of motorbike accessories and parts for $123.2 million.
The acquisition will increase the group’s revenue by 30 per cent to $310 million and double its EBITDA.
The business will fund the purchase with $98.7 million in cash and $24.5 million of MTO shares.
The cash component of the purchase will be funded through debt and a $67 million entitlement offer.
Shares in MotorCycle Holdings
(ASX:MTO) are trading 13.48 per cent higher to $4.80.
