MaxiPARTS Limited (ASX:MXI) entered into a Share Purchase Agreement to acquire 80% stake in Forch Australia Pty Ltd for AUD 9.7 million on May 2, 2023. The acquisition price of AUD 9.7 million for an 80% ownership stake is based on a 7x multiple for an average annual EBITDA based on the last 3 years, plus 80% net asset value of the Förch Melbourne dealership. Acquisition price values Förch Australia business at 4.8x multiple based on H1 FY23 EBITDA. The acquisition price includes approximately AUD 2.8 million of inventory. Put and call option linked to the acquisition of the remaining 20% of shares in 2 to 5 years. The acquisition is on a debt free basis and is to be funded through existing cash and an increase to MaxiPARTS Group debt facilities. The revised facility, when executed, will provide MaxiPARTS with a AUD 20 million loan facility with a maturity date of May 31, 2026. The loan is interest only for year 1, then amortising by AUD 0.5 million per quarter thereafter. In addition to the increase in debt facilities, MaxiPARTS has also maintained sufficient excess cash within the business to support the MaxiPARTS and Förch Australia working capital requirements. All employees of Förch Australia will remain with the business post completion, including the two current executive Directors Terry Childs and Peter Burgess of Förch Australia who will be responsible for the day to day operating of the Förch Australia business, reporting to the MaxiPARTS Managing Director and Chief executive officer. Completion expected at end of May 2023.

MaxiPARTS Limited (ASX:MXI) completed the acquisition of 80% stake in Forch Australia Pty Ltd on May 31, 2023. All conditions have now been satisfied or waived.