Motorcycle Holdings (MTO) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of select dealership assets from major motorcycle retailers in administration expands national footprint into South Australia and Western Australia, increasing market share from 16% to 20% and securing key geographical locations.

• Preserves brand integrity, prevents brand dilution through liquidation, and maintains continuity for staff and customers.

• Strengthens OEM relationships, digital retail capabilities, and positions the group for future industry consolidation and long-term value creation.

• Retains over 200 employees and established e-commerce capabilities, ensuring operational continuity.

• Sales post-acquisition projected to represent 20% of national new unit sales.

Financial terms and conditions

• Total consideration is AUD 7–9 million plus vehicle inventory, funded from existing cash reserves and bailment/wholesale facilities.

• No goodwill will be paid; purchase price covers used motorcycles, parts, accessories, plant/equipment, and brand/online business rights.

• Pro forma FY24 revenue for acquired dealerships is AUD 144 million, with PBT of AUD 2.5 million after head office costs.

• Transaction structured as an asset purchase and is expected to be immediately earnings accretive, with uplift from H1 FY26.

Synergies and expected cost savings

• Opportunities identified to increase used-to-new motorcycle sales ratio, boosting finance, insurance, and after-sales revenue.

• Shared services, integrated financial controls, and backend efficiencies expected post-stabilisation phase.

• E-commerce integration and backend fulfillment synergies targeted for future profitability improvements.

• Opportunity to capitalise on fixed-cost synergies and selectively integrate personnel and assets.