Aftermarket parts retailer 4 Wheel Parts acquired by ARB for $45m
ARB Corporation, Australia's largest 4WD parts and accessories manufacturer and retailer, is growing its US market share through a significant acquisition. ARB's 30% owned US business, ORW, is buying 42 retail stores operating under the 4 Wheel Parts brand from Hoonigan, a Clearlake Capital portfolio company.
Transaction snapshot
Deal value: $45 million
Deal multiples: N/A
Deal type: Acquisition
Investors: ARB Corporation, ORW
The deal includes 42 retail stores selling 4WD accessories such as tent awnings, tow straps, bed covers and tyres. ARB is also acquiring the Poison Spyder fenders business from Hoonigan for $1.5 million in a separate transaction.
ARB plans to increase its stake in ORW from 30% to 50%. The company's shares rose 6% to $42.23 following the announcement, boosting its market capitalisation to $3.3 billion.
The deal is expected to improve ARB's product range and brand awareness in US stores. ARB has also been expanding its US distribution, doubling its Texas distribution centre and leasing an additional centre in California.
