Miles Advisory is on the ticket to sell automotive services company MotorOne, along with Macquarie Capital, with the sale process set to get under way in September.
DataRoom understands that MotorOne’s annual earnings before interest, tax, depreciation and amortisation are now about $75m, with it generating income from three main business units.
These include smash repairs, subscriptions for minor repairs such as dents over three to five years, and car care services for added extras on cars for dealerships.
Describing itself as a leading business-to-business distributor of aftermarket products and services to Australian dealerships, MotorOne is in a strong position in Australia after growing market share and expanding into new channels.
Quadrant was believed to looking for a price of at least $600m when MotorOne was generating about $40m of earnings before interest, tax, depreciation and amortisation per annum, so the price could be closer to $1bn this time around.
Observers believe that the business may have some appeal to Bapcor, but private equity is more likely. Bapcor recently issued profit downgrades and in play itself, with Bain Capital recently offering to buy the business.
GUD is likely to sidestep the option, while O’Reilly Auto Parts is more retail dominated and would not suit MotorOne.
Quadrant bought MotorOne from private equity firm Navis Capital in 2016 for $300m when it was known as WorldMark.
Bapcor and Archer Capital were both underbidders at the time.
The asking price was around 10 times its EBITDA.
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