Sweeping management changes announced by Bapcor on Tuesday failed to rev up the company’s share price, but the $1.6bn Australian listed automotive after parts business may be saving the best news for its investor strategy update on April 28.
It’s now been almost a year after Bapcor fended off takeover advances from Bain Capital, and its share price has not exactly cratered since that time, but has not made any strong gains.
After Bapcor announced its executive general manager of trade, Steve Drummy, will be replaced by ex-Orora beverages division president Simon Bromell, who will start at the end of this month, shares closed down 1.4 per cent to $4.59.
Bapcor, backed by Tanarra Capital’s John Wylie, last year rejected a $5.40 per share – or $1.8bn – offer from Bain Capital after operational challenges had disappointed investors, causing its share price to fall.
DataRoom understands that private equity has moved on and is no longer around the hoop, so it’s all up to new boss, ex 7-Eleven Australia head Angus McKay, to create an earnings lift by reorganising the business.
Other than the appointment of Mr Bromwell, he’s also announced executive general manager of specialist networks and ex Chief Strategy and Transformation Officer Kristoff Keele would also depart at the end of June.
The group would integrate its group procurement function from the wholesale division, into the supply chain team from next month.
DataRoom understands that Bapcor had weighed a move to sell the wholesale unit, but opted against it because it would have a negative impact on the business overall
Yet some market experts believe distancing itself from the sale of the diesel maintenance unit is the right call.
It comes as Bapcor remains on the hunt for a new chief financial officer.
Mr McKay joined Bapcor last year and has since been moving to reset the company’s strategy in a quest to position the business for growth.
Following a strategic review, Bapcor remains focused on making its trade division a standout performer by improving technology.
Other changes include combining Bapcor’s Specialist Wholesale and Networks divisions from July 1 to become more market competitive.
The Networks team would incorporate its Auto Electrical Group, Commercial Vehicle Group, Wholesale and new Networks division.
Bapcor executive Craig Magill will take on the role of executive general manager of Networks, leading the combined networks team.
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