Bapcor Ltd., a well-known Australian auto parts retailer, rejected a takeover offer of up to 1.83 billion Australian dollars (about 1.2 billion US dollars) of global private equity giant Bain Capital (Bain Capital) on the grounds that the bid was too low.
The Zhitong Finance App learned that, according to media reports, Bapcor Ltd., a well-known Australian auto parts retailer, rejected a takeover offer of up to 1.83 billion Australian dollars (about 1.2 billion US dollars) of global private equity giant Bain Capital (Bain Capital) on the grounds that the bid was too low.
Bapcor is the parent company of brands such as auto parts seller Autobarn and service chain Midas. The company said on Tuesday that the $5.40 per share active cash purchase offer “is not fair value” or in the best interests of shareholders. Bapcor shares closed at $5.07 on the Australian Stock Exchange on Monday. Currently, the company's stock price has risen slightly and is hovering around $5.12.
Prior to Bain Capital's takeover offer on June 11, Bapcor's share price had fallen sharply by nearly 50% from its mid-2021 phased high, after a series of sharp cuts in profits due to serious inventory issues and the early departure of new CEO Paul Dumbrell (Paul Dumbrell).
According to public information, Bapcor Ltd. is an auto parts retailer and car service company headquartered in Australia. The company operates through several sub-brands, including Autobarn, Midas, and Burson Auto Parts, and provides a wide range of parts supply chains, tools and equipment, and car care services for the automotive aftermarket. Bapcor has an extensive business network in Australia, New Zealand and Thailand, covering auto parts distribution, wholesale and retail, as well as vehicle repair and maintenance services.
Regarding the acquisition initiated by Bain Capital, some analysts said that since Bapcor's stock price has dropped sharply in the past year due to drastic profit cuts and management changes, Bain Capital may believe that the current value of the company is undervalued by the market. Through acquisitions and improving the company's business model, it is possible to achieve higher market value and return on investment in the future.
Bain Capital is interested in acquiring Bapcor Ltd., and the potential aim may also be to expand its portfolio in the automotive aftermarket. Bapcor's extensive automotive after-sales service network and brand awareness in Australia, New Zealand and Thailand will bring stable revenue streams and growth opportunities for Bain Capital.
On a global scale, the automotive aftermarket is a stable and growing market. In particular, as the service life of vehicles continues to extend and the Federal Reserve maintains high interest rates for a long time, global consumer demand for car purchases has cooled down significantly, causing their demand for car maintenance and high-frequency maintenance to increase dramatically. Bain Capital may want to capitalize on this industry trend and seize market growth opportunities through the acquisition of Bapcor.