Autobarn owner Bapcor has picked up a 25% stake in Singapore auto parts group Tye Soon for around $12 million – putting a value on the new associate of $50 million.
Bapcor said in its ASX release that Tye Soon has 20 sites in Korea and Australia respectively, and a further 18 across Malaysia, Singapore and Thailand. Its annual revenue is SGD200 ($A192 million).
In view of Bapcor’s market value of $2.5 billion the acquisition is not a big deal, but it does give the company a retail and distribution link in South East and northern Asia to go with its New Zealand operations.
“The complementary expertise of Tye Soon and Bapcor brings a range of opportunities for both businesses to collaborate and grow their markets,” Bapcor CEO Darryl Abotomey said in the brief release.
“Tye Soon has particular strengths in genuine parts and aftermarket parts distribution as well as an excellent store network in fast-growing South East and North East Asian countries. Bapcor will work with Tye Soon to maximise the opportunities to grow their businesses in Asia and Australasia.”
The deal is expected to be finished in April.
Bapcor shares rose 0.5% to $7.44.