Automotive group Motus has acquired the entire issued share capital of FAI Automotive in the UK.
The purchase consideration is based on an enterprise value of roughly R700-million, with the effective cash outflow of R550-million to be funded from available cash resources and funding facilities.
FAI is a family-owned business that was established in 1968. It has more than 40 000 product offerings covering all major vehicle manufacturers.
It is situated in Leighton Buzzard, Bedfordshire, in the UK, with a leased distribution warehouse of 10 000 m2.
The business is also an independent distributor of replacement automotive parts globally, including in the UK and Europe.
“FAI is a highly reputable brand in the replacement parts industry and is renowned for a high-quality range of products covering globally manufactured passenger vehicles and light commercial vans,” comments Motus.
The existing management team will continue to manage the business on a day-to-day basis following the Motus acquisition.
Motus says the deal underpins its intention to expand its aftermarket parts (MAP) business offering.
“There are synergies with the existing MAP business to procure products at competitive prices from the Far East, including China and Taiwan, through combined buying power, and to use and share the existing distribution centres in the region.”