MotorCycle Holdings’ EBITDA to double after snapping up Cassons

Company News

by Jessica Amir

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.

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