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- Auto parts retailer Bapcor (BAP) is putting pedal to the metal with its Asian expansion strategy by purchasing a 25 per cent stake in Tye Soon
- Bapcor will pay around $12.06 million for the holding, which will provide exposure to Tye Soon’s roughly $193 million in annual revenue
- The company has been one of the rare winners during the COVID-19 pandemic, with more people focussed on domestic travel than international
- As a result, net profit after tax soared by almost 50 per cent to $67.7 million in the first half of the 2021 financial year
- Bapcor is up 0.27 per cent to $7.42 per share
Auto parts retailer Bapcor (BAP) is putting pedal to the metal with its Asian expansion strategy by purchasing a 25 per cent stake in Tye Soon.
Established in 1933 and listed on the Singapore Securities Exchange, Tye Soon is perhaps the most prominent parts distributor in Southeast and Northeast Asia, with 15 locations in Malaysia under the Naga Jaya brand, 20 in South Korea trading as Sejong and 20 in Australia under the Imparts banner.
Bapcor will pay around $12.06 million for the 25 per cent interest, which will provide exposure to Tye Soon’s roughly $193 million in annual revenue and give Bapcor a seat at Tye Soon’s board.
“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,” said Darryl Abotomey, Managing Director and CEO of Bapcor.
“Bapcor will work with Tye Soon to maximise the opportunities to grow their businesses in Asia and Australasia,” he added.
Bapcor has been one of the rare winners from the COVID-19 pandemic, with many Australians spending more on vehicles in support of domestic travel as overseas flights came largely to a halt.
With around 1100 outlets under the Autobarn, Burson, AutoPro and Sprint brands in Australia, the company’s net profit after tax soared by almost 50 per cent to $67.7 million in the first half of the 2021 financial year.
Completion of the deal is expected to take place in April this year.
Bapcor is up 0.27 per cent to $7.42 per share at 12:38pm AEDT.
