Australia's MaxiPARTS Completes AUD 11.2 Million Braking Business Acquisition

en.Wedoany.com Reported - Australian commercial vehicle parts supplier MaxiPARTS has announced the completion of its acquisition of the braking systems business and related assets of Air Brake Systems, for total consideration of AUD 11.2 million. The acquired target, located in Hornsby, New South Wales, primarily supplies braking system components for heavy trucks, buses, and trailers, with annual revenue of approximately AUD 20 million and average operating EBITDA of AUD 2.8 million.

Under the transaction arrangements, MaxiPARTS will pay 75% of the total consideration at closing, with the remaining 25% paid in two installments of 12.5% each upon the first and second anniversaries of closing, subject to agreed performance conditions. The acquisition is funded through the company's existing cash and debt facilities. Based on the total consideration of AUD 11.2 million, the initial payment amounts to AUD 8.4 million, with each of the two subsequent installments at AUD 1.4 million.

Air Brake Systems currently employs 20 people, operates a facility in Hornsby, and serves customers along Australia's east coast through remote sales and technical teams. Approximately 60% of its revenue comes from supplying brake kits to trailer manufacturers, with the remainder involving aftermarket brake components, fleet customer service, technical support, and connected vehicle solutions. The company is one of three authorized distributors of WABCO original equipment braking products in Australia, and also carries products from brands including Knorr-Bremse, Haldex, Raufoss, and Kongsberg.

MaxiPARTS plans to integrate the acquired braking products and technical service system into its existing national warehousing and distribution network, and to consolidate supply chain procurement, trailer manufacturer customer resources, and aftermarket channels. The company expects that, excluding synergies, the acquisition will be approximately 17% accretive to earnings per share on a full-year basis; combined with business growth, procurement synergies, and sales channel integration, the acquired business is expected to contribute AUD 5.5 million to the group's operating EBITDA by fiscal year 2029.