Burson Auto Parts has entered into a binding agreement that will boost its scale and drive wholesale and distribution business in the market.
As such the acquisition will also kick into gear the Burson Auto Parts' growth strategy which includes opening doors to 175 trade stores across Australia by June 2019.
It will also allow Burson Auto Parts to tap into Metcash Automotive Holdings' strong business base, including a marketing network of ten distribution centres, handling more than 130,000 stock keeping units through 416 stores and outlets under the Autobarn, Autopro, Carparts, ABS and Midas brands.
In addition, Metcash Automotive Holdings reportedly also has an aftermarket consumer network of around 3000 through its ATAP, IBS and Garrmax channels.
Burson Auto Parts has confirmed that the Metcash Automotive Holdings' senior management team will remain with the company following the acquisition.
Burson Auto Parts CEO Darryl Abotomey believes that merging the two companies will present exciting prospects for the domestic market.
“This acquisition represents a unique and exciting opportunity to enhance Burson Auto Parts’ position in the Australian automotive aftermarket parts industry and to deliver on our key strategic objectives.
“The acquisition complements our current trade focus, delivers increased scale and opens exciting new avenues of growth for our company.
“Metcash Automotive Holdings is a high quality business where we see a number of opportunities to drive growth under Burson Auto Parts’ ownership.”