Australian automotive parts company Bapcor has purchased commercial vehicle parts businesses Truckline and Diesel Drive for around $AU48 million.
Truckline was a CNH Industrial-owned company dealing in truck spare parts with 22 branches across Australia.
The trade network is supported by distribution warehouses in Perth, Western Australia and Brisbane, Queensland.
The group has 150 team members and revenues of around AU$100m.
Bapcor says the deal further extends its participation in the heavy commercial sector where it currently has a “modest wholesale presence” through its specialty wholesale division.
Diesel Drive is a business that specialises in the sale of Japanese commercial truck spare parts.
Operating from a single location in Sydney, it has 14 team members and revenues of around AU$13m.
Bapcor has been growing its presence in the Japanese commercial truck spare parts market with 15 new locations over the last 12 months and the Diesel Drive deal adds to this.
The company says it will keep expanding in this particular Japanese truck market with a target of 40 outlets.
The businesses are expected to achieve a return on investment of at least 15% and the acquisitions are expected to complete by December 2019.
“These acquisitions in commercial truck parts further strengthens Bapcor’s position as a specialist provider of automotive aftermarket parts, accessories, automotive equipment and services,” chief executive Darryl Abotomey says.
“The group is uniquely positioned to provide aftermarket parts to all forms of road transport.
“Australia continues to be dependent upon the logistical services provided by both the heavy and light commercial truck sectors.
“We see considerable opportunities for Bapcor with further expansion opportunities,” Abotomey says.
