Business
Acquisition of Tredz and Wheelies
Acquisition of Tredz and Wheelies.
About this update from Halfords Group Plc
[{"type":"text","content":"\n \nRNS Number : 0642Z Halfords Group PLC 24 May 2016 \n\n24 May 2016\nHalfords Group plc\nAcquisition of Tredz and Wheelies\n \nHalfords Group plc (\"Halfords\") announces that it has acquired Tredz Limited (\"Tredz\") and Wheelies Direct Limited (\"Wheelies\"), specialists in the online sale of premium bikes and accessories. \n \nKey points:\n· The acquired businesses comprise an online retailer of premium bikes and cycling parts, accessories and clothing, which trades UK-wide under the brand Tredz, and the UK's largest provider of bicycle replacement for insurance companies which trades under the brand Wheelies.\n \n· Tredz and Wheelies are based in South Wales, employ around 250 people and have been sold by the founders Keith and Michael Jones. \n \n· From a customer and supplier perspective the businesses will continue to trade on a standalone basis and will continue to be led by Keith Jones and the existing management teams.\n \n· Collectively these businesses generated revenue of circa £32m for the year ended 29 February 2016, up from circa £24m in the prior year, and EBITDA of £2.4m.\n \n· The initial cash consideration is £18.4m and has been settled from the Group's existing borrowing facilities. Dependent upon the financial performance of Tredz in the year ending 28 February 2017, there will be an element of deferred consideration payable in 12 months. The total purchase price is expected to equate to an EBITDA multiple of around 7 times and the acquisition will be earnings enhancing from the first year of ownership.\n \n \nJill McDonald, Halfords Chief Executive, commented:\n\"We are delighted with this acquisition, which we believe is a strong and complementary addition to the Group, extending our presence in the online market for premium bikes, parts, accessories and clothing. We continue to believe in the long-term growth potential of the cycling market. Keith and his management team have done a fantastic job of building a successful online retail operation and we look forward to working with them to develop and grow the businesses further.\"\n \nKeith Jones, Group Managing Director of Tredz and Wheelies, commented:\...