Halfords Group PLC - Worcestershire-based motor and cycling products retailer - Buys LTC Trading Holding Ltd and its subsidiary Lodge Tyre Co.
The acquisition is for a total sum of GBP37.2 million, and increases the service arm of Halford's business. "Post completion, on an annualised basis, services revenue will account for around 48% of group revenues, up from 26% in financial year 2020," it says.
Halfords expects Lodge Tyre to deliver incremental synergies worth GBP3.5 million by year 5 of ownership.
"The deal will be earnings per share accretive in the first year of ownership and will deliver an internal rate of return that exceeds the group weighted average cost of capital," Halfords adds.
Current stock price: 153.89 pence, up 7.3% on Wednesday
12-month change: down 48%
By Tom Budszus; tombudszus@alliancenews.com
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Halfords (HFD)