Australia auto parts retailer Bapcor rejects Bain Capital’s $1.2 bln bid

Industry:    5 months ago

Australian auto parts retailer Bapcor rejected on Tuesday the A$1.83 billion ($1.23 billion) buyout offer from private equity firm Bain Capital, saying it did not fully reflect the company’s value.

The company’s stock fell by as much as 4.3% in early trade on Tuesday. The Australian benchmark S&P/ASX200 was up 0.65%.

Bain Capital had offered to buy Bapcor for A$5.4 per share in cash, representing a 23.9% premium to the stock’s June 7 close of A$4.36.

But, in a statement on Tuesday, Bapcor – which operates the Midas and Autobarn stores across Australia – said the offer was not in its investors’ best interests.

Bain Capital declined to comment.

Bapcor had a market value of A$1.72 billion as of Monday’s close, according to LSEG data.

In a separate announcement, Bapcor named Angus McKay as its executive chairman and chief executive officer.

The automotive retailer also said its statutory net profit after tax for the second half of the year that ended on June 30 would be hit by impairment charges in the retail business.

It said the “quantum of these charges will be confirmed as part of the year-end process”.

Bapcor had forecast its proforma net profit for the year that ended on June 30 would be between A$93 million and A$97 million compared to $A125.3 million in 2023. It will report its full year results on Aug. 21.

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