MotorCycle Holdings, Australia‰Ûªs largest motorcycle dealership operator with 34 franchises operated from 24 locations in QLD, NSW and the ACT, has continued it recent string of acquisitions with the purchase of Cassons Pty Ltd.
Sydney-based Cassons is one of Australia's largest wholesale motorcycle accessories importers carrying over 70 brand names. Cassons also own Motor Cycle Accessories Supermarket brand with five stores in NSW and Vic.
With turnover of $225 million and 500 employees, Motorcycle Holdings was founded in the late 1980s with a single dealership in Brisbane‰Ûªs southern suburbs. Shares in Motorcycle Holdings rocketed 14.7 per cent or 62å¢ higher to close at $4.85 on Wednesday.
Motorcycle Holdings managing director David Ahmet said that the acquisition of Cassons, which sells helmets, jackets, gloves, boots and mechanical parts, made strategic sense.
‰ÛÏIt increases the scale of MTO‰Ûªs existing retail accessory business, expands our distribution network and provides opportunities to improve margin by sourcing additional Casson product for retailing through the MTO dealer network. We believe that the combination of the two businesses will also present significant growth opportunities, by introducing used motorcycles and other services into the growing Cassons retail network,‰Û
