MaxiPARTS Limited entered into an agreement to acquire Nineteen Group Pty Ltd from Viburnum Equity 4, LP managed by Viburnum Funds Pty Ltd. and others for AUD 27 million.

MaxiPARTS Limited (ASX:MXI) entered into an agreement to acquire Nineteen Group Pty Ltd from Viburnum Equity 4, LP managed by Viburnum Funds Pty Ltd. and others for AUD 27 million on November 14, 2023. A small proportion of the purchase price will be held in escrow for a maximum period of 18 months. As part of the acquisition MaxiPARTS will also acquire the wholly owned subsidiary of Nineteen Group, Independant Parts Pty Ltd. The acquisition will be funded by fully underwritten AUD 17.2 million institutional placement to partially fund the acquisition with the balance funded with AUD 10 million extension of the current debt facility in place and existing cash.

IP generated FY23 revenues of AUD 45.4 million and EBITDA of AUD 3.4 million. The acquisition is conditional upon completion of the placement, MaxiPARTS announcing to the ASX that it has raised or received firm commitments in debt and/or equity financing for a specified minimum amount and obtaining change of control consents of commercial site leases and ERP software on terms acceptable to MaxiPARTS and sellers. The acquisition is expected to be completed by the end of calendar year 2023.

The acquisition is expected to be mid single digit EPS accretive in FY24 on an annualized basis excluding synergies. Palomar Advisory is acting as Financial Advisor to MaxiPARTS.