Bapcor to sell MTQ Engine Systems business
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The news: Auto parts supplier Bapcor has agreed to sell its MTQ Engine Systems business as it continues to exit non-core assets.
The numbers: Bapcor did not disclose the size or other details of the deal, citing confidential terms, but said the sale was small relative to the company’s scale.
The deal is expected to be completed in the first half of FY25. It had acquired the business in 2016 for $17 million.
The context: MTQ is a national provider of diesel fuel injection and turbo aftermarket sales and services, distributing and servicing leading global brands.
New CEO Angus McKay said the highly specialised business provided services that are not core to Bapcor’s offering and the deal is an example of the company’s commitment to right-size its cost base and remove operational complexity.
Bapcor, which operates a network of 1,100 stores across the Autobarn, Autopro and Burson brands, last month posted a net loss of $158.3 million following impairments amid challenging trading conditions in its retail business and had flagged further cost cutting.
The source: ASX announcement
