*Updated to clarify cost breakdown
Halfords is to take over all 604 branches of National Tyres & Autocare, plus eight Viking wholesale warehouses and the Tyre Shopper website in a deal to acquire all shares in holdings company Axle Group, it was announced this afternoon.
[caption id="attachment_27896" align="alignright" width="300"] National Tyres Northallerton is one of 604 branches acquired by Halfords[/caption]
Around 1,400 jobs will be transferred to Halfords, including National's CEO, Tony Neill and there is no suggestion of any redundancies.
READ: HALFORDS UPGRADES FY PROFIT FORECAST
The deal comprises of a £62m consideration to be paid on completion, expected to be by December 9. A further investment of around £17 million will be made post acquisition on associated capital expenditure and £2 million on integration costs.
Halfords had previously expressed a desire to operate 800 garage branches in the UK, a figure it will now easily pass. The company has updated its website to explain what the change in ownership will mean for customers.
READ: HALFORDS TO HIRE 700 TECHNICIANS
Graham Stapleton, Chief Executive Officer of Halfords, commented: “This acquisition helps cement our position as the UK’s largest vehicle service, maintenance and repair business. It will also see us deliver on our established strategy of evolving Halfords to become a Motoring Services focused business, with Motoring revenue set to represent more than 70% of our pro forma revenue following the acquisition".
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