Acquisition of Lodge Tyre
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Halfords Group PLC (HFD)
5 October 2022 Halfords Group plc Acquisition of Lodge Tyre
Halfords is now the market leading, commercial tyre provider in the UK.
Headlines
Halfords Group plc (“Halfords” or the “Group”), the UK's largest provider of Motoring and Cycling products and services, today announces the acquisition of LTC Trading Holdings Limited and its subsidiary Lodge Tyre Company (The) ("Lodge Tyre") (the "Acquisition") (the “Company”) for total consideration of £37.2 million (the “Consideration”) with £33.2 million paid on completion and £4 million paid in FY25 subject to performance.
Graham Stapleton, Chief Executive Officer of Halfords, commented: "The acquisition of Lodge Tyre is yet another example of Halfords’ strategic aim of becoming a Motoring Services-focused business, and will mean that Motoring accounts for over three quarters of our total revenue. The current trading environment reinforces the rationale for building ever-more resilient, needs-based revenue streams, which is exactly what the Motoring category offers. Within that, the nature of the commercial tyre market means that it is non-discretionary and therefore extremely well insulated against macroeconomic uncertainty.
Lodge is an outstanding operation that perfectly complements our existing commercial tyre businesses of McConechy’s and Universal Tyres, and gives us a much greater reach across the UK. We were already the UK’s market-leading Motoring Service provider to consumers, and this acquisition will also make us the UK’s largest commercial tyre provider. We look forward to welcoming the Lodge team to the Halfords family.” Lodge Tyre overview
Strategic benefits
Acquisition Summary
(1) Figures reflect the Company’s last audited financial statements, with pro forma adjustments made to reflect the differing structure of the business post completion. Adjustments include asset transfers, management charges and property rental costs. All numbers are pre-IFRS16.
Enquiries Investors & Analysts (Halfords) Jo Hartley, Chief Financial Officer Richard Guest, Corporate Finance Director Andy Lynch, Head of Investor Relations +44 (0) 7483 457 415
Media (Powerscourt) +44 (0) 20 7250 1446 Rob Greening halfords@powerscourt-group.com Nick Hayns Elizabeth Kittle
Next trading statement On 23 November 2022 we will report our Interim results for the period ending 30 September 2022.
Notes to Editors
www.halfords.com www.tredz.co.uk www.halfordscompany.com
Halfords is the UK's leading provider of motoring and cycling services and products. Customers shop at 397 Halfords stores, 3 Performance Cycling stores (trading as Tredz and Giant), 656 garages (trading as Halfords Autocentres, McConechy’s, Universal, National Tyres and Lodge Tyres) and have access to 253 mobile service vans (trading as Halfords Mobile Expert, Tyres on the Drive and National) and 440 Commercial vans. Customers can also shop at halfords.com and tredz.co.uk for pick up at their local store or direct home delivery, as well as booking garage services online at halfords.com.
Cautionary statement This report contains certain forward-looking statements with respect to the financial condition, results of operations, and businesses of Halfords Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Halfords Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein. |
| ISIN: | GB00B012TP20 |
| Category Code: | ACQ |
| TIDM: | HFD |
| LEI Code: | 54930086FKBWWJIOBI79 |
| OAM Categories: | 3.1. Additional regulated information required to be disclosed under the laws of a Member State |
| Sequence No.: | 192401 |
| EQS News ID: | 1456695 |
| End of Announcement | EQS News Service |
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