Halfords has acquired Tredz and Wheelies for an initial consideration of £18m. This is expected to add £3m+ EBITDA to the group on a multiple of 7x including a deferred earn-out. Earnings enhancement in the current part year is expected to be 1.0-1.5% but then grows to 2.5-3.0% next year, with risk to the upside in the event management over delivers in the earn out. The acquisition gives Halfords entry into complementary markets brings incremental skills to the group. As noted in our preview yes ....
24 May 2016
Accretive Tredz and Wheelies acquisition
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Accretive Tredz and Wheelies acquisition
Halfords Group Plc (HFD:LON) | 155 3.1 1.3% | Mkt Cap: 339.3m
- Published:
24 May 2016 -
Author:
Matthew McEachran -
Pages:
4
Halfords has acquired Tredz and Wheelies for an initial consideration of £18m. This is expected to add £3m+ EBITDA to the group on a multiple of 7x including a deferred earn-out. Earnings enhancement in the current part year is expected to be 1.0-1.5% but then grows to 2.5-3.0% next year, with risk to the upside in the event management over delivers in the earn out. The acquisition gives Halfords entry into complementary markets brings incremental skills to the group. As noted in our preview yes ....