MaxiPARTS expands operations

MaxiPARTS has announced it has entered into an agreement to purchase an 80 per cent stake in workshop consumables distributor, Förch Australia Pty Ltd, with the deal said to be worth an estimated $9.7 million in cash.

Förch Australia is primarily focused on automotive and commercial vehicle workshops, with company-owned operations in Western Australia and Victoria alongside a third-party dealer in Brisbane.

Operating as a stand-alone business under the MaxiPARTS Limited portfolio, Förch Australia provides an adjacent product offering that complements the existing MaxiPARTS brand.

Förch Australia holds an exclusive agreement with German company Theo FÖRCH GmbH & Co KG to distribute FÖRCH products across Australia until 2030.

“The acquisition of Förch Australia is an exciting step forward in the development of MaxiPARTS Limited and is fully aligned with the company’s acquisition criteria as both businesses share a set of core business operating and success factors,” said MaxiPARTS Managing Director and CEO, Peter Loimaranta.

“Both businesses have a small level of customer crossover, and we expect introducing the Förch business to our existing customers will provide immediate growth opportunities for both businesses.”

All employees of Förch Australia, including the two current owners, Terry Childs and Peter Burgess, will remain with the business post-acquisition. Childs and Burgess will each retain 10 per cent ownership of Förch Australia with a put and call option in place that can be exercised by either party between two and five years post-completion.

Both Childs and Burgess will remain Executive Directors of Förch Australia and will be responsible for the day-to-day operation of the Förch Australia business, reporting to the MaxiPARTS Limited Managing Director and Chief Executive Officer.

The acquisition is expected to be completed at the end of this month.